Net inflows into UCITS funds totalled €51.1bn during August 2016, up by 4.3% from €49bn in July, according to a European Fund and Asset Management Association (EFAMA) report this morning. 

This increase predominantly stemmed from a rise in net flows into multi-asset class and bond funds.

Long-term UCITs (excluding money market funds) recorded net inflows of €33bn, compared to €25bn in July. Multi-asset funds also saw a surge in net sales from €100m in July to €4bn in August while those into bond funds increased from €23bn to €25bn.

However, equity funds recorded net sales at a slower pace from €2bn in July to €1bn in August. Short-term UCITs net sales were also lower – money market net sales were down by 24% from €24.1bn to €18.1bn. 

“Net sales of UCITS remained strong in August, with increased net sales of equity, bond and multi-asset funds,” said Bernard Delbecque, senior director for economics and research at EFAMA.

In sum, this meant that net assets of UCITS funds increased by 1.1% to €8,437bn in August.

Meanwhile, alternative investment fund (AIF) net assets increased by 0.7% to €5,382bn. AIFs recorded net inflows of €4.2bn, down from €16bn in July. This lower increase was mainly due to net outflows from AIF equity and money market funds.

Combined, UCITS and AIF net sales for August were €55bn, down by 20% from €66bn in July.

Overall, total net assets of European investment funds increased by 1% in August to total €13,820bn at the end of the month.