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Ucits and AIF flows fell sharply between April and May

Net assets hit a fresh peak but even this minor victory was tempered


Pete Carvill

The net sales of Ucits and AIFs dropped to €64bn from €96bn between April and May 2021, according to the latest figures from the European Fund and Asset Management Association (Efama).

Broken down, long-term Ucits recorded €64bn in net sales in May, down from €89bn the month before. Equity and bond funds recorded net sales and net inflows of €29bn and €15bn in the same period, down from €48bn and €20bn in April.

Multi-asset funds and money market funds recorded no change in inflows in this period.

Net inflows into Ucits also fell in this period, dropping from €97bn to €55bn.

Tainted triumph

On a brighter note, the net assets of Ucits and AIFs surpassed €20trn for the first time. Thomas Tilley, senior economist at Efama, said that this was due to “solid net sales and the strong performance of global stock markets in recent months”.

But even this minor victory is tempered with a glance at the previous month’s statistics. According to those, the total net assets of Ucits and AIFs increased by 1.1% between March and April 2021, meaning that the rate of growth has dropped significantly.

There has been some debate recently over how the EU regulates AIFs, a role which is currently being reviewed under a public consultation that may lead to ‘AIFMD II’. This is despite, as one interviewee told Funds Europe, the current legislation being found by many managers to be “workable if not perfect”.

Recent changes

There has been a lot of change at Efama in recent weeks. As Expert Investor reported in June, the association appointed Naïm Abou-Jaoudé, chief executive of Candriam, to a two-year term as president. Joining Abou-Jaoudé were Peter Branner of APG Asset Management and Joseph Pinto of Natixis Investment Managers as vice-presidents. Abou-Jaoudé succeeded Nicolas Calcoen, deputy general manager of Amundi.

Efama’s monthly report uses data from 29 associations across Europe, which the body claims represents 98% of total Ucits and AIF assets across the continent. It is made up of 28 member associations, 58 corporate members and 24 associate members.