Total net assets of UCITS and AIFs increased by 3.8 per cent with EUR17.2 trillion in third quarter of the year, according to the latest Quarterly Statistical Release from The European Fund and Asset Management Association (EFAMA).
UCITS and AIFs recorded net sales of EUR190 billion, compared to EUR87 billion in the second quarter.
UCITS accounted for the largest part of the net sales (EUR157 billion), up from EUR39 billion in Q2 2019. Net sales of AIFs amounted to EUR33 billion, down from EUR48 billion in Q2 2019.
Net outflows from equity funds slowed down to EUR12 billion, compared to EUR32 billion in the second quarter. Persistent downside risks related to trade policies and geopolitical factors continued to weigh on demand for equity funds.
European bond funds attracted EUR81 billion, accounting for 43 per cent of total net sales of funds in Q3 2019. Demand for money market funds significantly strengthened with net inflows reaching EUR73 billion.
Bernard Delbecque (pictured), Senior Director for Economics and Research, says: “The sustained high level of net sales of bond funds can be explained by the shift towards more accommodative monetary policies and the market’s assessment that this stance will be necessary for a prolonged period. This happened in the context of lower net outflows from equity funds, which suggests that investor confidence in the recovery of future economic growth started to strengthen during the third quarter.”