2020 is so turbulent, but active funds still lose

category:Finance
 2020 is so turbulent, but active funds still lose


In addition to BlackRock, pioneer group raised $67.7 billion and State Street Global raised more than $20 billion.

According to statistics, global investors have invested $98 billion in fixed income index funds in the first six months of 2020 and withdrawn $50 billion from non index products.

Passive funds track stock indexes, rather than actively bet on the performance of which securities. Generally speaking, in a volatile market, the level of return of active funds is slightly higher. In the unilateral upward trend, the performance of index funds is relatively strong.

Tony Thomas, senior manager research analyst at Morningstar, said that although investors have been buying index products to invest in stocks for a long time, more and more people are buying fixed income index funds, which has severely hit large active bond fund management companies such as Pacific Investment.

He added that in pioneer group, in the first half of 2020, there was not only an active and passive problem, but also a tug of war between stocks and fixed income funds. Although both assets showed net inflows in six months, pioneers equity funds had an outflow of $43 billion in the second quarter, while fixed income funds had an inflow of $76 billion.

In the case of State Street, the banks fund management company benefited from strong investor demand for its gold ETFs, which accounted for the bulk of the companys capital inflows.

According to Jingshun holdings, investors have been responding to the unpredictable market news in the past year, and the global epidemic situation, brexit of the UK and Sino US friction have intensified investors expectation of risk, which has led to a change in the style of investors.

The company also said that Jingshun holdings was greatly affected as a result. In the future, they expect the company to strengthen the distribution of low-risk investment products to improve cash flow. There are also companies that have expressed different views. In the first six months of this year, the total amount of money transferred from customers to other investment products, such as investment trusts and independent accounts, was not taken into account in Morningstars data, compared with $8.8 billion in the first six months of this year. The company also said that although the transfer of funds in the form of capital outflow, but they have no impact on the overall assets under management of the company, nor does it represent redemption, after all, it is just a transfer from one product to another. Source: Wall Street news editor in charge: Zhong Qiming_ NF5619

The company also said that Jingshun holdings was greatly affected as a result. In the future, they expect the company to strengthen the distribution of low-risk investment products to improve cash flow.

There are also companies that have expressed different views. In the first six months of this year, the total amount of money transferred from customers to other investment products, such as investment trusts and independent accounts, was not taken into account in Morningstars data, compared with $8.8 billion in the first six months of this year.

The company also said that although the transfer of funds in the form of capital outflow, but they have no impact on the overall assets under management of the company, nor does it represent redemption, after all, it is just a transfer from one product to another.