Investors Shun Active Managers and Pile into Passives

UK funds see third consecutive month of positive flows, with BlackRock gaining at the expense of active fund houses such as Invesco and M&G

Annalisa Esposito 20 February, 2020 | 2:15PM

Pounds

Bullish investors poured £812 million into funds in January as optimism continued following December's General Election. It's the third consecutive month of net inflows and represents a real turnaround from last year, when outflows totalled £17 billion.

But not all funds have enjoyed the turnaround in investor sentiment and active fund houses were among the worst hit. Mark Barnett's Invesco Income and High Income funds continue to bleed assets, albeit at a slower pace than in recent months. The funds were downgraded by Morningstar analysts in November amid concerns about their high exposure to illiquid smaller companies. The manager, once a protege of Neil Woodford, has also suffered from the fallout of the Woodford Equity Income fund, which is currently being wound up. 

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About Author

Annalisa Esposito  is a data journalist for Morningstar.co.uk

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