Dutch investment funds hit record AUM at EUR 1 trillion
Households deposited a record EUR 3.8 billion in Dutch investment funds in 2020. This boosted their assets managed by investment funds to EUR 47.3 billion. Dutch investment funds saw their assets under management (AUM) top EUR 1 trillion for the first time at year-end 2020, driven in part by soaring stock prices.
Households deposits soared
On balance, Dutch deposits in Dutch investment funds had increased by EUR 3.8 billion at year-end 2020, in the largest increase in net deposits seen in a decade (see Figure 1). This reflected the fact that part of the households’ COVID-19 savings were deposited in investment funds. This effect was particularly visible in the second and fourth quarters, when household income is typically higher. These quarters were also when the first and second waves of the pandemic hit. Household assets managed by investment funds rose to EUR 47.3 billion as a result. Mixed funds and bond funds in particular benefited from additional household deposits, at the expense of equity funds.
DNB had earlier observed an exceptional surge in bank savings (see “Exceptional growth in household deposits in 2020”).
Equity funds and other funds show growth as bond funds contract
At year-end 2020, household assets managed by Dutch investment funds had reached an unprecedented EUR 1,000.4 billion. New deposits contributed EUR 18.4 billion to growth in 2020. As usual, most deposits were made by institutional investors in addition to households. Capital growth contributed EUR 18.0 billion.
Equity funds, which represent the largest investment category, faced EUR 76.6 billion in capital losses in the first quarter of 2020 as stock exchanges slumped globally. On the back of a robust rebound, however, they still managed to add EUR 23.8 billion to their assets’ value for full 2020, posting 9% in annual returns. Dutch equity funds’ assets under management increased by EUR 16.8 billion on balance in 2020, as withdrawals totalled EUR 6.9 billion (see Figure 2).
Other funds likewise saw their assets under management go up sharply, by EUR 33.0 billion. Growth in this category was driven mainly by new deposits in mortgage funds (EUR 10.1 billion) and loan funds (EUR 8.6 billion), and capital growth in private equity funds (EUR 7.6 billion).
By contrast, bond funds saw their managed assets reduced by some EUR 15.8 billion in a downward trend seen since 2016. Institutional investors in particular have withdrawn a total of EUR 97.8 in assets from bond funds since then.
Link to statistics on investments funds.