🧭 News from the active/passive fund flow side in Europe: What has happened since the beginning of 2021?

27 May 2021

YTD 2021, equity active fund flows reached a 5-year record high. In Europe, year to date, active fund flows dominate at €248bn vs €76bn for passive funds. This is true for both equity and fixed income flows. Equity active fund flows reached a 5-year record high, already above the level of 2020 at €134bn vs €119bn in 2020. They are also above those of passive funds at €134bn vs €52bn respectively. In fixed income, active funds also dominate flow with €67bn vs €23bn for passive funds. (Source Morningstar data end of April 2021).

In April 2021, fixed income flows rebound strongly. Over the month of April 2021, total flows are up 29%. Active funds had the highest increase +33% to €64bn vs +17% for passive funds at €20bn. The increase didn’t come from equity fund flows as they were down 22% vs March 2021 and after record months since November 2020. Yet, on their side, fixed income fund flows experienced a strong rebound as they were six times higher than those of March 2021 at €30bn vs €5bn boosted the US interest rate stabilization after the sharp rise since December. Fixed income passive funds experienced the strongest increase at €8bn vs €0.9bn in March 2021.

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Marlene Hassine Konqui