October’s Ucits sales impacted by geopolitical tension, data shows

Ucits and alternative investment funds experienced a shift in fund flows in October, with a reversal from net outflows of €13 billion in September to net inflows of €1 billion. 

According to the European Fund and Asset Management Association’s (Efama) net sales data on Ucits and alternative investment funds for October 2023, there were overall net inflows of €2 billion within the Ucits category, contrasting with net outflows of €11 billion in the preceding month. 

However, long-term Ucits, excluding money market funds, faced substantial net outflows of €34 billion, compared to €15 billion in September. 

Equity and multi-asset funds also saw increased net outflows, while bond funds, which had consistently attracted inflows since November 2022, experienced their first monthly outflows of €4 billion. 

In contrast, Ucits money market funds recorded a significant increase in net inflows from €4 billion to €37 billion. 

Alternative investment funds registered net outflows of €1 billion in October, an improvement from the €2 billion in net outflows in September. Despite these dynamics, the total net assets of Ucits and alternative investment funds decreased by 1.8% in October, reaching €19,397 billion.

Bernard Delbecque, senior director for economics and research at Efama, commented: “Net outflows from long-term Ucits reached levels not seen over the past twelve months, as Hamas’ terrorist attack and Israel’s response generated new uncertainties and concerns for investors.”

© 2023 funds europe

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