Active funds suffer worst outflows since 2008 as investors flee fixed income

Active funds had $568bn outflows in H1

Active portfolios experienced the most severe outflows in a six-month period since 2008 during the first half of this year, as investors contended with a challengingly volatile market, according to Morningstar.

Morningstar's annual Global Fund Flows research found that investors pulled a net $136bn from markets in H1 this year. Only June-December 2008, the height of the Global Financial Crisis, saw more negative flows than the first half of 2022, in absolute terms. Analysts said that "key asset classes have endured negative returns due to turmoil in investment markets, societies, the environment and geopolitics". While there were net outflows for the period, this was not universally felt by the markets, with active funds suffering $568bn in outflows in H1, while index funds enjoyed $432bn of...