European UCITS sales in April 419% higher than non-UCITS counterparts

Sales of UCITS-qualified funds outstripped their non-UCITS counterparts by 419% in April, according to research by the European Fund and Asset Management Association.

European UCITS sales in April 419% higher than non-UCITS counterparts

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Sales of UCITS-qualified funds outstripped their non-UCITS counterparts by 419% in April, according to research by the European Fund and Asset Management Association.

The report, published 19 June and accounting for more than 99.6% of all UCITS and non-UCITS assets, showed a significant rise in net new money flows into all categories of UK and European UCITS vehicles, rising from €69bn (£49.2bn) in March to €83bn (£59.2bn).

This represented a 418.75% gulf against non-UCITS products, which hit net sales of €16bn (£11.4) – €12bn (£8.6bn) of which were institutional-only – down from €18bn (£12.8bn) a month earlier.

As of the end of April, total UCITS assets stood at €9tn (£6.4tn), up 0.4% month-on-month, while total non-UCITS funds saw a slight decrease, dropping 0.2% to €3.5tn (£2.5tn).

Bernard Delbecque, director of economics and research at EFAMA, said: “Demand for long-term UCITS remained robust in April as the economic outlook for Europe improved following the launch of quantitative easing by the European Central Bank.”

Money market UCITS vehicles posted a €20bn (£14.3bn) reversal in net flows, with €18bn (£12.8bn) of April inflows against €2bn (£1.4bn) outflows in March.

Long-term UCITS funds (non-money market UCITS products) also registered an increase, climbing by €66bn (£47.1bn), though net new money flows were 7% less than the €71bn (£50.7bn) recorded the previous month.

By asset class, the most improved were equity funds, which reversed a €3bn (£2.1bn) net outflow in March to register €6bn (£4.3bn) of April inflows.

Bond funds continued to see new money, with net sales of €22bn (£15.7bn), though this was slightly down on €26bn (£18.6bn) in March.

Likewise, total money in balanced funds also increased, rising by €29bn (£20.7bn), albeit while representing a 26.5% deceleration when compared to the March figure of €39bn (£27.8bn).

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