Investors’ confidence strengthened in the last quarter of the year thanks to positive vaccine news, driving a surge in net assets and inflows across the world. A sharp rebound in equity fund net sales in Europe and sustained net inflows into bond funds in the United States underpinned long-term fund sales growth internationally. Meanwhile, sales of worldwide MMFs turned positive again due to strong net inflows in China and Europe, offsetting net outflows in the United States.
The main developments through the quarter are as follows:
- Net assets - Net assets of worldwide investment funds increased by 10.9 percent in Q4 2020. The United States and Europe, registered net asset growth of 9.5% and 6.8%, respectively.
- Net inflows - Worldwide long-term funds recorded net inflows of EUR 582 billion, up from EUR 411 billion in Q3 2020. Europe and the United States accounted for the majority of net sales (EUR 243 billion and EUR 194 billion, respectively)
- Bond funds - Bond funds attracted the largest net sales (EUR 274 billion), mostly in the United States (EUR 190 billion) and Europe (EUR 47 billion).
- Equity funds - Net sales of equity funds bounced back strongly in Q4 2020 (EUR 167 billion), compared to net outflows of EUR 24 billion in Q3 2020.
- Multi-asset funds – Multi-asset funds recorded robust net inflows (EUR 121 billion), with China accounting for EUR 49 billion in net sales, followed by Europe (EUR 38 billion) and Canada (EUR 22 billion).
- Long-term funds - Sales for long-term fund assets surged in Q4 2020, mainly due to a rebound of equity fund net sales in Europe and sustained net inflows into bond funds in the United States.
- Money market funds - Worldwide money market funds (MMFs) recorded net inflows of EUR 75 billion, compared to net outflows of EUR 167 billion in Q3 2020. Net outflows from MMFs in the United States slowed down to EUR 59 billion, compared to EUR 197 billion in Q3 2020. MMFs continued to attract net inflows in Europe (EUR 44 billion), slightly higher than in Q3 2020 (EUR 41 billion). China recorded high net sales of MMFs (EUR 91 billion), compared to net outflows in Q3 2020 (EUR 21 billion).