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Net assets of UCITS and AIFs jump 4.5% in Q1 2021

Thursday, June 03, 2021
Opalesque Industry Update - Net assets of UCITS and AIFs recorded an increase of 4.5% in Q1 2021, reaching €19.6trn, according to the European Fund and Asset Management Association's (EFAMA) latest investment fund industry factsheet.

UCITS net assets increased by 5.6%, whereas the net assets of AIFs grew by 2.6%. The solid growth of UCITS was driven by robust stock market gains and strong net sales.

UCITS and AIFs attracted EUR 201 billion of net inflows in Q1 2021 - Net sales of UCITS amounted to EUR 169 billion, compared to EUR 226 billion in Q4 2020. AIFs attracted EUR 32 billion in net new money over the quarter, compared to EUR 64 billion in Q4 2020.

Demand for equity funds climbed to another record - After the already exceptionally high net inflows in Q4 2020 (EUR 129 billion), net sales of equity funds edged even higher in Q1 2021 (EUR 133 billion). The sustained attractiveness of equity funds was supported by strong stock market performances, both in Europe and across the world.

Net inflows into bond, multi-asset and other funds remained robust - Net sales of bond funds increased from EUR 49 billion in Q4 2020 to EUR 54 billion in Q1 2021. Net inflows into multi-asset funds declined slightly from EUR 39 billion in Q4 2020 to EUR 34 billion in Q1 2021, whereas net sales of other funds rose from EUR 30 billion in Q4 2020 to EUR 60 billion in Q1 2021.

Money market funds recorded net outflows (EUR 80 billion) for the first time since Q1 2020 - As investor confidence increased further in Q1 2021, investors shifted their investments into long-term funds.

Bernard Delbecque, Senior Director for Economics and Research - Positive net sales and rising stock markets pushed the net assets of UCITS and AIFs very close to the symbolic level of EUR 20 trillion in the first quarter of the year. Net sales of equity UCITS remained exceptionally strong through the quarter as investors' confidence continued to strengthenthanks to extensive vaccine rollouts, strong signs of economic recovery and the good performance of stock markets.

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