January 20, 2021

For 2020, Conventional Equity Funds Suffered Net Redemptions of $664 Billion

by Tom Roseen.

Investors were net purchasers of mutual fund assets for the first month in seven, injecting $87.1 billion into the conventional funds business (excluding ETFs, which are reviewed in the section below) for December. For the first month in 23, stock & mixed-assets funds took in net new money (+$12.4 billion) for December. Investors continued to pad the coffers of fixed income instruments, pushing the fixed income funds macro-group to its eighth consecutive month of net inflows, attracting $77.2 billion for December (their largest monthly net inflows on record). However, money market funds (-$2.5 billion) witnessed net outflows for the seventh month running. For 2020, conventional Stock & Mixed-Assets Funds (excluding ETFs) handed back a whopping $664.0 billion, while Bond Funds took in $260.0 billion and Money Market Funds attracted some $692.4 billion.

For the sixteenth month running, ETFs witnessed net inflows, taking in $57.1 billion for December. Authorized participants (APs—those investors who actually create and redeem ETF shares) were net purchasers of stock & mixed-assets ETFs for the seventh consecutive month, injecting $40.6 billion into equity ETF coffers. And for the ninth month in a row, they were net purchasers of bond ETFs—injecting $16.5 billion for the month. APs were net purchasers of all five equity-based ETF macro-classifications, padding the coffers of Sector Equity ETFs (+$19.1 billion), World Equity ETFs (+$15.1 billion), U.S. Diversified Equity ETFs (+$5.1 billion), Mixed-Assets ETFs (+$1.0 billion), and Alternatives ETFs (+$265 million). For 2020, Stock & Mixed-Assets ETFs took in $283.0 billion and Bond ETFs attracted $206.8 billion of net new money.

In this report, I highlight the December and 2020 fund-flows results for both types of investment vehicles.

Highlights:

  • For the first month in seven, mutual fund investors were net purchasers of fund assets, injecting $87.1 billion from the conventional funds business for December.
  • Fixed income funds (+$77.2 billion for December, a monthly record) witnessed net inflows for the eighth month in a row, while money market funds (-$2.5 billion) suffered net outflows.
  • For the first month in 23, investors were net purchasers of stock & mixed-assets funds (+$12.4 billion).
  • For 2020, APs injected $489.8 billion into ETFs.
  • APs were net purchasers of ETFs, injecting $57.1 billion for December, for the sixteenth month of consecutive inflows.
  • And, for the ninth month running, fixed income ETFs attracted some $16.5 billion, while investors padded the coffers of stock & mixed-assets ETFs (+$40.6 billion), their seventh straight month of net inflows.

Click here to download the December 2020 FundFlows Insight Report: For 2020, Conventional Equity Funds Suffered Net Redemptions of $664 Billion.

Refinitiv Lipper delivers data on more than 330,000 collective investments in 113 countries. Find out more.

Join a growing community of asset managers and stay up to date with the latest research from Refinitiv and partners to help you inform your investment decisions. Follow our Asset Management LinkedIn showcase page.

Get In Touch

Subscribe

Related Reports

Despite mixed market results for the Refinitiv fund-flows week ended Wednesday, February ...

Investors were overall net purchasers of fund assets (including those of conventional ...

Investors were net purchasers of mutual fund assets for the second month in a row, ...

Despite concerns of a possible increase in defaults, slightly stronger taxable-equivalent ...

We have updated our Privacy Statement. Before you continue, please read our new Privacy Statement and familiarize yourself with the terms.×