09.07.2021

Vaccine Approvals a Turning Point for Active Funds

August was a strong month for equity funds, with inflows rising to £1.3bn. Since the sea change in sentiment towards equity funds that accompanied the announcement of successful clinical trials of Pfizer’s, Moderna’s and AstraZeneca’s Covid-19 vaccines in November 2020, investors have added £17.2bn to their equity holdings. This means more than a third of the net inflows to equity funds (35%) since 2015 has taken place in the last ten months alone.

Key highlights from this month’s FFI:

  • Since vaccine approvals in Nov 20, equity funds have seen £17bn of inflows
  • This is one third of all new capital to equity funds since 2015
  • Passive fund flows have lagged behind active funds in nine of the last ten months – they saw inflows of just £4m in August, compared to £1.3bn for active funds
  • Vaccine approvals also proved a key turning point for active funds
  • Even after stripping out ESG funds, big drivers of active strategies, traditional active funds have seen more new capital than index trackers since November 2020

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

Source: Calastone

Related articles

  1. Upstart exchange has seen market share increase to near 4%.

  2. Goldman Sachs Asset Management’s fundamental equity business manages over $20bn in thematic equities.

  3. Data extraction and integration is the second stage of a digitization process.

  4. With Ankit Mittal, Business Change Manager, Global Trading, Schroders

  5. IIGCC and lead investors will launch a pilot with companies including BP, Eni, Repsol, Shell and Total.