The European fund industry notched net inflows of 297.1 billion euros for the first nine months of 2020.While funds focused on global equities were the most popular among long-term investors.
Money market funds — which usually invest in low-risk, liquid assets like short-term bonds — were the best-sellers over the year to date, with inflows of 211.3 billion euros, according to Refinitiv's European Fund Industry Review. These types of funds yield some income, but are mainly used to park cash in times of high volatility.
However, the data and research provider found that total assets under management across the region's fund industry slipped from 12.3 trillion euros in Dec. 2019 to 12 trillion euros in Sept. 2020, which it attributed in large part to the performance of underlying markets, which saw a 531 billion euro decline.
"The coronavirus pandemic hit the European fund industry with declining markets and estimated net outflows of €125.9 bn in the first quarter of 2020," Detlef Glow, head of Lipper EMEA research at Refinitiv, said in the report.