EFAMA published its latest quarterly European statistics, tracking and analysing trends in European regulated open-ended fund assets and net flows during Q2 2021, including insight on the owners of investment funds in Europe and their net purchases of funds during the first quarter of 2021.
The main developments through the quarter are as follows:
- Net assets of UCITS and AIFs increased by 4.1% in Q2 2021 – UCITS net assets grew by 4.5% and net assets of AIFs grew by 3.4% as they cross the EUR 20 trillion threshold.
- UCITS and AIFs attracted EUR 228 billion of net inflows over the quarter - Net sales of UCITS amounted to EUR 210 billion, and net inflows into AIFs amounted to 18 billion. During the first half of 2021, UCITS and AIFs attracted EUR 430 billion in net new money.
- Demand for equity funds stayed strong - After the record net inflows in Q1 2021 (EUR 133 billion), net sales of equity funds declined, but remained historically high at EUR 94 billion, due to Investor confidence in the stock market rebound.
- Net sales of other long-term funds remained robust - Net sales of bond funds amounted to 40 billion over the quarter, compared to EUR 55 billion in Q1 2021. Net inflows into multi-asset funds increased from EUR 37 billion in Q1 2021 to EUR 63 billion in Q2 2021.
- Money market funds (MMFs) recorded net outflows (EUR 18 billion) - Investors continued to reduce their net holdings of MMFs in Q2 2021, albeit at a much slower pace than in the previous quarter.
- Record breaking investment by European households - European households invested EUR 55 billion in investment funds through Q1 2021, a number not seen since Q2 2017. On the other hand, net acquisitions of funds by European insurers and pension funds declined to EUR 18 billion, from EUR 71 billion in Q4 2020.
Bernard Delbecque, Senior Director for Economics and Research – “Net sales of long-term UCITS, in particular equity funds, remained very strong in Q2 2021, as the successful rollout of the Covid-19 vaccination campaign and the recovery of the global economy boosted investor confidence.”