2015 was a strong year for European investment funds as multi-asset and equity funds drew particular interest, according to the European Fund and Asset Management Association.

Net sales of European investment funds rose to a record €725 billion ($799 billion) in 2015, boosting assets under management by 11 per cent to €12 trillion, according to new data.

Demand for UCITS reached an all-time high in 2015, with €573 billion of net sales, according to the European Fund and Asset Management Association. Indeed, 13 countries achieved asset growth of at least 10 per cent, and in seven countries, net inflows into UCITS exceeded €20 billion. 

Multi-asset funds attracted the largest net inflows of €236 billion, attributed to the appeal of their broad market, asset class and sector diversification.

Despite the shaky second-half for global stock markets, European equity funds recorded the best year for net sales since 2000, generating €134 billion as investors remained confident in the region's economic outlook and the willingness of the European Central Bank to maintain its accommodative monetary stance to support activity.

Money market funds completed the year with positive net inflows – of €77 billion – for the first time since 2008. Bond funds, however, saw net sales fall from 2014 to €83 billion amid a reversal in bond yields and the associated “uncertainty concerning the evolution of the bond market”.

“The growth of fund assets has been substantially positive across Europe, with a very few exceptions, confirming investor confidence in UCITS and AIF [alternative investment funds],” said Bernard Delbecque, director of economics and research at EFAMA.