INVESTORS CHOOSE PASSIVE OVER ACTIVE FUNDS, AS ESG BECOMES MAINSTREAM ACROSS THE WORLD
In our latest global report, we analyse the investor trends that emerge from the hundreds of millions of trades that have passed across our network over the last two years. We have found that index tracking funds are steadily taking over the fund management industry, but their progress-to-date and the pace of change vary widely from one part of the world to another and across different fund segments and asset classes.
Some of the key findings from this special fund flows report:
- In an eventful 2020, equity fund trading on our network rose to $477bn, up 45% compared to 2019
- Net inflows for index tracking equity funds were $23.5bn in 2019 and 2020
- Our index shows investors everywhere prefer index funds, but Europeans are most enthusiastic
- High trading volumes in active funds reflect frequent decision making rather than popularity – active funds shed $5.4bn of capital over two years
- ESG funds have taken $84 out of every net $100 flowing into equity funds in the last two years, a total of $15.1bn out of $18.1bn
- UK and European investors have been the keenest buyers, but Asians and Australians are lagging behind