Index funds celebrate record inflows, while active managers suffer record outflows

04 Jul 2019

Equity index funds enjoyed record net inflows of capital in the second quarter of 2019. Meanwhile, by contrast, active funds suffered record outflows. Between March and June, a net £2.1bn flowed into index-tracking equity funds, the largest inflow Calastone’s index has ever recorded, compared to £1.9bn that was withdrawn from actively managed funds. 

Here are some of the key highlights from this month’s FFI:

  • Equity index-tracking funds see record £2.1bn inflows in Q2, while active funds suffer record £1.9bn outflows
  • Index funds have taken an ever larger share of fund flows in recent years
  • Investors trade their active fund holdings far more than index-trackers – the latter enjoy much steadier buying and very little turnover
  • FFI: Equity Index Tracker was an extremely positive 62.8 (50 is neutral). FFI: Equity Active was 47.2 – below 50 signifies selling.
  • Elsewhere, fixed income saw strong inflows in June, in another sign of falling investor risk appetite, and real estate funds saw a ninth consecutive month of outflows.
  • Equity income funds saw very strong outflows, as competitors were affected by the suspension in May of a high profile fund in the category

To read further insights from the FFI, please click through this link

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