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European fund sales hit all-time high in 2014: trade body

[LONDON] Net sales of European investment funds hit an all-time high of 601 billion euros (US$687 billion) in 2014 to take total assets under management past 11 trillion euros, the European Fund and Asset Management Association said on Thursday.

The annual sales figure was above the 412 billion euros recorded in 2013 and was fuelled by a jump in demand for funds that were compliant with Europe's UCITS regulation.

The growth rate of 15 per cent came despite sluggish economic growth, deflationary threats and geopolitical tensions, said Director of Economics and Research Bernard Delbecque in a statement.

"The overall positive outcome can be explained by four key factors: the quest for investment returns in a context of very low interest rates; the attractiveness of investment funds in terms of investor protection; the great variety of investment strategies and risk-return profiles available in the investment fund market; and the role of central bank actions to prevent deflation and foster economic growth," he said.