Where the Money Went in 2020

Passive funds attracted the lion's share of inflows in 2020 with £36 billion of new money, but active managers like Baillie Gifford and JPMorgan had a strong year

James Gard 20 January, 2021 | 9:30AM

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The final fund flows data of 2020 is in and we can now reveal the final scorecard after an extraordinary year for investors. Some £35.7 billion was added to UK domiciled funds, according to Morningstar Direct, with passive funds snapping up £33.1 billion of that. And 2020 was also a year when sustainable funds really came to the fore, bringing in £11 billion of new money. So which fund company, asset class and category came out on top?

Fund Flows 2020

Despite a volatile year on global stock markets, equity funds were the most popular option in 2020, followed by allocation and fixed income options. Rather than driving investors away, March's sell-off sparked a flurry of money into equity funds, says Bhavik Parekh, manager research analyst for Morningstar. “Equity investors were incentivised by markets that had suddenly become 30% cheaper” he says.

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About Author

James Gard  is content editor for Morningstar.co.uk

 

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