𝐈𝐧 𝐄𝐮𝐫𝐨𝐩𝐞, after a strong 2020, active funds continue to dominate the flows in H1 2021 with more than 75% of inflows. Active equity fund flows continue to be the big winners in this period of pandemic at €170bn, above the level of the whole 2020 (€119bn) and at a five-year record high. Worth noticing, active equity ESG flows represent 60% of active equity flows. And non-ESG active fund flows have also been multiplied by 3 vs 2020 to reach €71bn. In Europe, the pandemic has triggered a renewal of interest for active strategies not only for ESG but also traditional.
𝐈𝐧 𝐭𝐡𝐞 𝐔𝐒, active strategies ex-US equities are also benefiting from the new environment with positive flows of €34bn in H1 2021 vs outflows of €85bn in 2020. Yet this is hidden in total US fund flows due to the continuous, although decreasing outflows from US equity active funds of €75bn vs €202bn in 2020.
𝐖𝐨𝐫𝐥𝐝𝐰𝐢𝐝𝐞, in H1 2021, active fund flows are above those of passive at €711bn vs €558bn for the first time since 2015. They have also nearly reached their 10-year record high of 2017 (€724bn). Passive funds on their side at €558bn are already close to the level of the whole 2020 of €566bn. Yet they are below the record high level of 2017 of €859bn.
👉Fair to say that 2021 should be a year of record for worldwide fund flows as they are already on their way to overtake the 2017 record. But what is less obvious in investors’ minds is that it should concern not only passive funds but also active funds.
𝐓𝐡𝐢𝐬 𝐜𝐨𝐧𝐟𝐢𝐫𝐦𝐬 𝐨𝐮𝐫 𝐯𝐢𝐞𝐰 𝐭𝐡𝐚𝐭 𝐛𝐨𝐭𝐡 𝐚𝐜𝐭𝐢𝐯𝐞 𝐚𝐧𝐝 𝐩𝐚𝐬𝐬𝐢𝐯𝐞 𝐟𝐮𝐧𝐝𝐬 𝐡𝐚𝐯𝐞 𝐚 𝐝𝐢𝐬𝐭𝐢𝐧𝐜𝐭 𝐫𝐨𝐥𝐞 𝐭𝐨 𝐩𝐥𝐚𝐲 𝐢𝐧 𝐩𝐨𝐫𝐭𝐟𝐨𝐥𝐢𝐨𝐬.
Marlene Hassine Konqui