How the Covid 19 impacted the European Asset Management industry in 2020?

28 January 2021

1. A positive impact on fund flows with an active bias
Mutual fund flows increased by 12% in 2020. The share of active funds in total flows reached 59% vs 48% in 2019 (Source Morningstar December 2020).

2. A strong rebound of equity flows with an active bias
The share of equity in total flows rose to 53% vs 10% in 2019. Equity flows at €171bn, were multiplied by 6. Active funds experienced a trend reversal with €119bn of inflows vs €48bn of outflows in 2019. Passive fund flows were up 12% at €93bn.

3. A significant decrease of fixed income flows with a passive bias
Fixed income decreased by 50% to €212bn in 2020. Active funds declined by 55% and stood at €111bn. Passive fund flows decreased by 37%. The share of passive fixed income flows in fixed income flows was up from 28% to 35%.

4. A positive impact on assets with a passive bias
Mutual fund assets increased by 4% in 2020. Active fund assets were up 3% vs +10% for passive funds. The share of the passive fund increased by 1 pt to 20% in 2020. The share of fixed income passive funds in total fixed income assets increase by 1.5pts at 17%.

👉A global analysis of active and passive funds gives a fair view of investor preferences.

Marlene Hassine Konqui