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The European investment fund industry enjoyed a second consecutive year of strong growth in 2013, thanks to increased investor optimism amid encouraging economic data and rising stock markets. Net sales of UCITS and non-UCITS totaled €410 billion in 2013, compared to €307 billion in 2012. Net fund assets represented 68 per cent of GDP at end 2013, up from 63 per cent at end 2012. This indicator highlights the significant role played by investment funds as financial vehicles raising capital from retail and institutional investors, and providing funding to many European corporations and government agencies.
Investment fund assets in Europe increased by 8.9 per cent to €9,788 billion: overall, net assets of UCITS increased by 9.0 per cent to €6,866 billion. Net assets of non-UCITS increased by 8.8 per cent to €2,922 billion. Net sales of UCITS reached €229 billion: demand for UCITS reached its highest level since 2006 and surpassed the net sales of €196 billion registered in 2012. Long-term UCITS enjoyed the second best year in the decade: long-term UCITS recorded net inflows of €313 billion, compared to €233 billion in 2012. Balanced funds attracted €114 billion of net inflows, followed by equity funds (€99 billion) and bond funds (€70 billion).
Money market funds suffered from increased net outflows: money market funds recorded net outflows of €84 billion, marking a significant increase compared to 2012 when net outflows amounted to €37 billion. Low short-term interest rates remained a challenge for the money market funds industry in 2013. Sales of non-UCITS reached €181 billion: net sales of non-UCITS increased in 2013, up from €114 billion in 2012. Special funds (funds reserved to institutional investors) attracted €154 billion in net new money in 2013, thanks to high institutional demand from insurance companies, pension funds and other institutional investors.