European fund sales more than halve in 2016

Europe-European-Flags-EU-700.jpgFlows into European Ucits funds more than halved in 2016 compared to a year before, with multi-asset funds recording sharp falls for the period, according to the latest figures from the European Fund and Asset Management Association.

Net sales of Ucits funds totaled €82bn (£73.4bn) in the last quarter of 2016, down from €129bn in the previous quarter. However, in 2016, Ucits garnered net sales of €275bn, compared to €590bn in 2015.

The worst quarter for sales of European funds was the first quarter of 2016, where outflows were €7bn.

In particular, multi-asset funds suffered a sharp fall in net sales in 2016, as investors limited their exposure to stock markets.

Multi-asset funds registered net sales of €15bn in Q4, slightly up from the €13bn registered in the third quarter. But on a yearly basis, these sales dropped by £200bn, going from €240bn inflows in 2015 to just €48bn in 2016.

However, investment fund assets in Europe increased by a total 6.1 percent to a record €14trn in 2016, with net assets of Ucits soaring by 5.5 percent to €8.7trn.

Bernard Delbecque, senior director for Economics and Research EFAMA says: “2016 was another record year for the European investment fund industry, with net assets of European investment funds rising to an all-time high of €14trn and net sales of AIF reaching an all-time high of €184trn. Despite multiple adverse shocks, the net sales of Ucits remained largely positive in 2016.”