Fund Flows: Active Trounces Passive in Equity Rally

Equity funds stormed back into favour in a strong month for performance, while active funds received three times as many flows as their passive rivals

James Gard 21 December, 2020 | 10:28AM
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Equity funds swung dramatically back into favour last month, according to Morningstar flow data, as investors returned to risky assets following a vaccine breakthrough and a decisive result in the US Presidential Election. The month also saw a significant comeback for active funds, which received three times the level of inflows as passive funds. In total, UK funds saw £6.5 billion of net inflows in November, with equity and allocation categories out in front with the biggest flows, while fixed income fell out of favour, and alternative and property funds saw net outflows.

Investors poured £4.6 billion into UK domiciled equity funds in November, the lion’s share of the month’s positive flows, surpassing the next biggest category, allocation funds, which brought in £2.8 billion. Some £1.6 billion of the net inflow into equity funds was due to the launch of funds by ACCESS, a government pension scheme for local councils, says Morningstar analyst Bhavik Parekh.

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James Gard  is content editor for Morningstar.co.uk

 

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