European Fund trends in Q4 2021 – Further slowdown in the net sales of long-term UCITS
The European Fund and Asset Management Association (EFAMA) has today published its European Quarterly Statistical Release for Q4 of 2021, together with an overview of the full year 2021.
The main developments through the quarter are as follows:
- Net asset growth of UCITS and AIFs over the quarter amounted to 5.4%.
- UCITS and AIFs attracted EUR 232 billion of net inflows.
- Demand for equity funds slowed down against a backdrop of volatile stock markets.
- Multi-asset and other funds attracted robust net inflows, whereas net sales of bond funds turned negative.
- Net sales of money market funds (MMFs) rebounded strongly.
- European households’ appetite for investment funds continued in Q3 2021.
Bernard Delbecque, Senior Director for Economics and Research at EFAMA, commented on the Q4 2021 results: “The further decline in demand for long-term funds in the last quarter of 2021, coupled with a sharp upturn in net sales of money market funds, indicates investor caution is on the rise. This trend is likely to continue for a while given the uncertainties concerning monetary policy and the war in Ukraine.”
2021 full year highlights include:
- Net assets of UCITS and AIFs grew by 16.7% to reach EUR 21.9 trillion at the end of last year.
- Net sales of UCITS and AIFs rose to EUR 863 billion, compared to EUR 649 billion in 2020.
- Net sales of UCITS surged to EUR 796 billion, an amount never reached before.
- Net sales of AIFs fell to EUR 67 billion, from EUR 177 billion in 2020, mainly due to disinvestments by certain large pension funds in the Netherlands.
- 2021 was an absolute record year for equity funds, with net sales surging to EUR 399 billion, well above the previous record in 2017 (EUR 163 billion).
- UCITS bond and multi-asset funds also had a good year, with net sales of EUR 111 billion and EUR 194 billion, respectively.
- Money market funds stopped attracting net new money in 2021.
Notes to editors
About the EFAMA Quarterly Statistical Release:
The release is published by EFAMA every quarter and presents net sales and net assets data for UCITS and AIFs 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. It also includes a section providing information on the owners of investment funds in Europe and their net purchases of funds.