ANNOUNCEMENT: Expert Investor is now PA Europe. Read more.

UCITS sales double to hit 463bn record

Net sales of European investment funds reached an all-time high of 601bn in 2014 with UCITS sales almost doubling, a report revealed today.


According to the European Fund and Asset Management Association (EFAMA), assets under management in the European funds industry also hit the €11trn mark, growing 15% throughout the year. 
“This was all achieved despite sluggish growth, deflationary threats and geopolitical tensions,” said Bernard Delbecque, director of economics and research.
He said this growth was partly driven by investment fund protection offered to consumers, as well as low interest rates, and the variety of investment strategies.
The year also saw UCITS net sales nearly double to €463bn, compared to €243bn in 2013.
Bond funds were the best sellers, attracting the largest net inflows of €198bn last year from €79bn in 2013. However, it was a different picture in December, with net sales dipping into negative territory.
Delbecque said: “For the first time in 2014, demand for bond funds turned negative in December in a historically low interest rate environment where investors are searching for higher yield and protection against interest rate risk.” 

“Gloomy economic outlook”

Demand for balanced funds also rose to record levels, with net sales of €186bn compared to €118bn in 2013. Delbecque said this was down to the “uncertain macroeconomic environment”, as the reduction in risk offered by this type of fund “continued to attract many investors”.  
Meanwhile, equity funds broke-even in December, after seeing a sharp decrease to €55bn last year, from €97bn in 2013, which was said to be due to a “gloomy economic outlook and volatile stock markets”.
EFAMA uses net sales of 27 associations representing more than 99.6% of total UCITS and non-UCITS assets.