World Economy

QE Boosts Ucits Sales

QE Boosts Ucits SalesQE Boosts Ucits Sales

Net sales of Ucits (Undertakings for Collective Investment in Transferable Securities) funds jumped in January to €83b ($88b), compared to net outflows of €12b in December, according to the latest data presented by The European Fund and Asset Management Association (Efama).

Bernard Delbecque, director of Economics and Research commented: “Net sales of Ucits increased considerably in January on the back of the ECB decision to launch a quantitative easing programme and the related expectation of stronger economic growth and lower interest rates in the euro area,” Investment Europe reported Wednesday.

According to Efama, the turnaround in net sales came on the back of a large increase in net sales of long-term Ucits and a strong return to positive net sales of money market funds, with long-term Ucits funds reporting €55b of net new inflows in Janaury, compared to €16b in December.

Meanwhile, bond fund net sales returned to positive territory in January posting inflows of €18b, against net outflows of €1b in December.

Equity funds recorded net sales of €9 billion, up from breakeven point in December, balanced funds enjoyed a rise in net sales to €27b in January, compared to €13b in December.

Europe’s main fund management trade body said 100% of asset managers want to participate in its proposed cross-border personal pension product.

Efama’s idea for a ‘European Personal Pension’ would allow asset managers to gain economies of scale by centralizing certain functions to do with administration and investing.

Efama says the desire to centralize these functions is the main survey finding of its corporate members.