Asset Management

New fund launches sink to 19-year low as asset managers move to ‘defence mode’

The coronavirus fallout means firms are pouring resources into retaining existing assets rather than attracting new cash

Thursday 30 April 2020 at 02:00

Failure to launch: Asset managers are failing to get new funds off the ground, much like this SpaceX Falcon 9 rocket which failed on March 15
Failure to launch: Asset managers are failing to get new funds off the ground, much like this SpaceX Falcon 9 rocket which failed on March 15 Photo: Getty Images

New funds rolled out by European asset managers have dropped to a low not seen in almost two decades, as investment firms halt product launches amid the Covid-19 pandemic.

Asset managers, which have been hit with record outflows from funds since the onset of the crisis, are instead scrambling to keep a hold on existing assets while fielding an increase in investment-related queries from jittery clients.