The European Fund and Asset Management Association (EFAMA) has published its latest quarterly international statistics, tracking and analysing trends in worldwide regulated open-ended fund assets and flows for Q3 2020.
“Despite strong net outflows from equity funds in the United States, net sales of worldwide long-term funds remained very high in Q3 2020. A trend supported by continued demand in Europe and other advanced economies, the sharp increase in net sales of multi-asset funds in China and the sustained demand for bond funds in the United States”.
Bernard Delbecque, Senior Director for Economics and Research at EFAMA
The main developments in Q3 2020 can be summarised as follows:
Growth in worldwide net assets of investment funds
- Net assets of worldwide investment funds increased by 1 percent in Q3 2020 to EUR 52.2 trillion. Measured in U.S. dollars, the growth in assets reached 5.6 percent. The smaller asset growth measured against the euro reflects the depreciation of the dollar vis-à-vis the euro during Q3 2020. Calculated in local currency, the United States and Europe, registered a net asset growth of 4.3% and 2.7%, respectively. Among the seven largest regions/countries in terms of net fund assets, Brazil recorded the strongest growth (5.6%).
Sustained net inflows of long-term funds at a high level
- Worldwide long-term funds recorded net inflows of EUR 411 billion in Q3 2020, compared to EUR 387 billion in Q2 2020. Europe and emerging markets accounted for the highest net sales (EUR 156 billion and EUR 104 billion, respectively), followed by the United States (EUR 90 billion) and other advanced economies (EUR 61 billion).
- Bond funds attracted the vast majority of long-term fund sales (EUR 279 billion), mostly in the United States (EUR 221 billion) and Europe (EUR 65 billion).
- Net sales of equity funds turned negative (EUR 24 billion), due to large net outflows in the United States (EUR 124 billion) and despite net inflows in Europe (EUR 45 billion), other advanced economies (EUR 33 billion) and emerging markets (EUR 23 billion).
- Multi-asset funds recorded robust net inflows (EUR 100 billion), with China accounting for the lion’s share of net sales (EUR 91 billion).
Net sales of money market funds turned negative
- Worldwide money market funds (MMFs) recorded net outflows of EUR 168 billion, compared to net inflows of EUR 441 billion in Q2 2020. The reversal of the trend was mainly driven by the turnaround in the United States, from net inflows of EUR 270 billion in Q2 2020 to net outflows of EUR 197 billion in Q3 2020.
- At the same time, MMFs continued to attract net inflows in Europe (EUR 41 billion), albeit less strong than in Q2 2020 (EUR 136 billion).
