Inflows into alternative investment funds in Europe rebounded in November when compared to massive outflows during October, as inflows for Ucits funds fell significantly, according to data released by the European Fund and Asset Management Association, or Efama.
Alternative investment funds attracted nearly 9 billion euro in net inflows in November, compared to net outflows of 69 billion euro in October. Luxembourg AIFs were responsible for 3.65 billion in inflows, or 42 percent of the total. The grand duchy held 13 percent of the 29-country total AIF assets of 7,285 billion euro at the end of November, trailing Germany and France, which respectively held 30 percent and 17 percent.
Irish Ucits inflows surge
Ucits inflows fell to 44 billion euro in November from 71 billion a month earlier. Some 43 percent of the November inflows stemmed from Irish funds, while about one third of these inflows was in France. Luxembourg accounted for 10 percent.
In terms of the 12 trillion euro in Ucits assets held at the end of November, Luxembourg accounted for 34 percent of the total held in the 29 countries monitored by Efama.
Long-term Ucits, a category that excludes money market funds, saw inflows of 1 billion euro in November compared to net outflows of 53 billion in October.
“Hopes that interest rates have approached their peak led to a rebound in investor demand for bond funds, whereas net outflows from equity funds were reduced to almost zero amidst renewed optimism toward stock markets,” said Bernard Delbecque, senior director for economics and research at Efama, in a comment.
Equity funds outflows decline
Equity funds recorded net outflows of 1 billion euro, compared to net outflows of 14 billion in October. Bond funds registered net inflows of 8 billion euro, compared to net outflows of 21 billion euro a month earlier. Multi-asset funds recorded net outflows of 7 billion euro, compared to net outflows of 14 billion euro in October.
Money market Ucits funds inflow more than halved in November compared to a month earlier and registered net inflows of 43 billion euro, down from 124 billion in October.
The total net asset value of Ucits and AIFs increased by 2.2 percent in November to 19,660 billion euro. Ucits accounted for 63 percent; AIFs for 37 percent.
Efama’s monthly data is based input from 29 European countries: Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Liechtenstein, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey, and United Kingdom.
Efama’s investment fund industry fact sheet (November 2022)
