Ucits and Alternative Investment Funds (AIFs) experienced mixed fortunes during the third quarter, according to the latest statisstics reported by Brussels-based European fund sector trade association Efama. Net assets of these investment funds dipped to 19.7 trillion euro, down 0.6 percent from the second quarter, reflecting a cautious market sentiment.
Ucits saw a rise in net inflows to 29 billion euro during the July-September period, contrasting with the previous quarter’s modest 1 billion euro. In particular equity and multi-asset funds faced net outflows, while bond funds and money market funds, MMFs, gained traction. Multi-asset funds lost 23 billion euro, after losing 20 billion in the second quarter.
Bond funds enjoyed net inflows of 20 billion, compared to 35 billin in the second quarters. MMFs recorded net inflows of 38 billion compared to 6 billion in the the April-June period. ETF inflows kept pace. Net sales of ETFs reached 36 billion euro in the third quarter, compared to 33 billion euro in Q2.
Alternative fund inflows diminish
AIFs, although registering net inflows, saw a decline from the second quarter’s robust performance. Equity funds continued to face outflows, but at a lower level of 4 billion euro compared to 19 billion in the second quarter. Bond, multi-asset, and real estate funds attracted investors, albeit at a slower pace. Other fund types saw a downturn.
Amidst this mixed scenario, SFDR Article 9 funds maintained their growth streak, marking a notable ten consecutive quarters of net inflows. Retail investor engagement in Europe remained strong, with substantial fund purchases.
Fund flows in Europe
Efama publishes the release every quart for 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.