In Q1 2021, equity active funds gathered €106bn of inflows vs €119bn for the whole 2020. 2020 was already a 10-year record high for equity active flows.
The trend reversal toward equity active funds flows is gathering momentum. In Q1, equity active flows are higher than passive funds that gathered €39bn of flows. In 2020, for the first year since 2013, they were also higher than passive funds at €119bn vs 93bn.
In fixed income, active funds also dominate flow with €40bn vs €15bn for passive funds. This is in line with the previous quarter.
The same trend can be observed globally with total active fund flows above those of passive funds at €180bn vs €55bn in Q1 2021. Total active fund flows for the quarter are also the highest quarterly flows for this category for 5 years.
👉 The Covid 19 crisis and the rise of sustainable investments have put back in the forefront the differentiating role of each investment style. Being well informed on the active/passive debate without denying evidence is crucial for efficient fund allocation decisions.
Marlene Hassine Konqui