Worldwide open-ended funds cash in €657bn in Q4 2020

On the 03/18/21 at 7:53AM


Adrien Paredes-Vanheule

Net assets of worldwide investment funds, including funds of funds, soared 5.8% over the fourth quarter of 2020 to €55.2trn (vs. €52.2trn in Q3’20), of which €18.2trn in Europe. Data from the European fund and asset management association (Efama) suggests a total net inflow of €657bn in worldwide open-ended funds for the period (vs. €244bn in Q3’20).

By asset class, long-term investment funds and money market funds accounted for €582bn and €75bn of the net new subscriptions observed in Q4’20 respectively. Bond funds led the pack with €274bn net inflows, followed by equity funds (€167bn) and multi-asset funds (€121bn). In addition, net new cash in real estate funds amounted to €12bn and in other funds to €8bn.

Efama stressed that in Q4’20, the European market recorded net sales of €243.3bn in long-term open-ended funds as well as €43.6bn in net flows for money market funds. Besides, European investors poured €130.8bn in equity funds, €47.3bn in bond funds while plugging €37.9bn into multi-asset funds. Allocations to other funds and real estate funds stood at €19bn and €8.5bn respectively. Moreover, some €48.8bn went into ETFs and €47.1bn into institutional funds. Solely guaranteed funds experienced outflows in Q4'20 with €832bn pulled by European investors. With €115.1bn boarded in net new cash, Irish open-ended funds topped European fund flows' rankings in Q4'20 before funds of Luxembourg (€58.6bn), Germany (€45.5bn) and France (€22.3bn).

Regarding the worldwide distribution of investment fund net assets as at end Q4 2020, Efama calculated that the United States and Europe held the largest market shares, with 47.6% and 33%, respectively. China (3.9%), Australia (3.6%), Japan (3.5%), Canada (3.1%), Brazil (2.6%), Rep. of Korea (1%), India (0.6%) and South Africa (0.3%) follow in this ranking. Five European countries ranked among the top ten largest fund domiciles globally: Luxembourg (with 9% of worldwide investment fund assets), Ireland (6%), Germany (4.5%), France (3.7%), and the United Kingdom (3.2%).  

As to the number of funds (including funds of funds), Europe lay ahead with 59,834 funds registered as of end 2020, out of 142,250 funds tallied globally (or 42% of the worldwide fund market). Americas followed with 42,787 funds (including 11,231 in the US) and the Asia and Pacific region counted 37,497 products. China has gained more than a thousand funds in one year, from 5,683 as of end 2019 to 6,770 as at end 2020. However, Brazil remains the country where the number of funds moved up the most over last year with 22,433 funds numbered as of end 2020 (vs.19,052 funds as at end 2019).

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