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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

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.

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