Morningstar data shows flow of assets from active to passive in 2019

Events of 2019 'left black marks on the industry'

Passive investment vehicles gained £19bn in 2019, while £32bn was redeemed from active vehicles during the year, according to data from Morningstar Manager Research.

Bhavik Parekh, associate analyst, manager research at Morningstar, said that 2019 "could have been a better year" for active fund managers and added that a number of events "left black marks on the industry". "The biggest story of the year was the gating, and ultimate winding-up, of LF Woodford Equity Income (now LF Equity Income)," said Parekh. "Another instance of a fund being gated was M&G Property Portfolio, which saw £1bn withdrawn through 2019 before its gating in December. Events such as these haven't done anything to stem the flow of assets from active to passive vehicles." ...