๐Ÿ‘€ Are you aware of the 2 biggest surprises concerning the impact of the Covid 19 crisis on the European mutual fund industry ?

16 February 2021

๐Ÿ. ๐’๐ฎ๐ฌ๐ญ๐š๐ข๐ง๐š๐›๐ฅ๐ž ๐Ÿ๐ฎ๐ง๐ ๐Ÿ๐ฅ๐จ๐ฐ๐ฌ ๐š๐›๐จ๐ฏ๐ž ๐ญ๐ก๐จ๐ฌ๐ž ๐จ๐Ÿ ๐ง๐จ๐ง-๐ฌ๐ฎ๐ฌ๐ญ๐š๐ข๐ง๐š๐›๐ฅ๐ž ๐Ÿ๐ฎ๐ง๐๐ฌ
In the wake of the Covid 19 crisis, sustainable fund flows increased significantly in 2020 to reach the record level of โ‚ฌ227bn, up 84% vs 2019 (Source Morningstar Dec 2020). Non-sustainable fund flows were down 23% vs 2019 at โ‚ฌ180bn. Sustainable fund flows were above those of non-sustainable funds and represented 56% of total flows in 2020 vs 32% over the past 2 years.

๐Ÿ. ๐„๐ช๐ฎ๐ข๐ญ๐ฒ ๐š๐œ๐ญ๐ข๐ฏ๐ž ๐Ÿ๐ฅ๐จ๐ฐ๐ฌ ๐ฎ๐ง๐ž๐ฑ๐ฉ๐ž๐œ๐ญ๐ž๐ ๐ซ๐ž๐›๐จ๐ฎ๐ง๐
Sustainable Equity active fund flows reach โ‚ฌ91bn, +248% vs 2019. Surprisingly non-sustainable equity active fund flows experienced a trend reversal with โ‚ฌ28bn of positive flows vs โ‚ฌ75bn of outflows in 2019. Overall Equity active flows represented 29% of total flows in 2020, a 10y record level.

๐Ÿ‘‰If many investors are well aware of the first surprise, how many have in mind the second ? Ignoring evidence may lead to wrong investment decisions. Both active and passive investment styles have a role to play in portfolio.

Marlene Hassine Konqui