U.S. and AIFs surpass the 20 billion dollar milestone.
European UCITS and AIFs See Net Inflows, Despite Drop in May Compared to April
Net inflows into European UCITS-compliant funds decreased in May compared to April, according to data from Efama, an association that aggregates statistics from 29 national associations across Europe. Despite this decrease, the combined assets under management (AuM) for UCITS and Alternative Investment Funds (AIFs) still reached 22 billion euros in May, representing around 98% of UCITS and AIFs' assets in Europe.
The drop in net inflows in May was primarily due to a shift from money market funds towards long-term UCITS. This transition reflected easing tariff concerns and market recovery from an earlier sell-off. Long-term UCITS, excluding money market funds, rebounded strongly in May with net inflows of 70 billion euros, compared to net outflows of 6 billion euros in April.
Equity funds within UCITS also saw increased net inflows, rising to 25 billion euros in May from 16 billion euros in April. This continued investor interest in equity funds helped maintain or grow overall AuM for UCITS and AIFs, despite the reduced monthly net inflows.
The assets under management for AIFs reached 7.42 trillion euros, with the increase primarily driven by multi-asset, real estate, and other funds. UCITS and AIFs in Europe have surpassed the 20 trillion euro mark in assets under management for the first time.
In contrast, Equity AIFs continued to see outflows, totaling 47.5 billion euros in the first five months of the year. Bond funds saw a slight decrease in inflows, with 15 billion euros added in May compared to 20 billion euros in April. Mixed funds, however, saw stable inflows of 17 billion euros in May.
In May, net inflows into European UCITS-compliant funds totaled 55 billion euros, down from 97 billion euros in April. Despite this decrease, the overall AuM for UCITS and AIFs remained robust due to strong inflows in equity and ETF segments within UCITS.
[1] Data source: Efama statistics.
- The continued investor interest in equity funds, resulting in increased net inflows, explains why other finance segments, such as long-term UCITS and ETFs, contributed to the overall business growth for UCITS and AIFs, despite a drop in May.
- The increased net inflows for long-term UCITS, Multi-asset, Real Estate, and other funds show that despite the drop in May, investors are still focusing on various business ventures, which has led to a larger market for both UCITS and AIFs.
