Investing North America January 13, 2021During the first two quarters of 2020, investors placed their faith and their dollars with large, diversified, and well-established firms. Although these high performers comprised a seemingly representative sample of 25 percent of all firms in the industry, 80 percent of the flows to this group went to just ten asset managers, generating $183 billion in net inflows. Incumbency has benefits in a period of extreme volatility. Impact of COVID-19 crisis on asset-manager flows in 2020 Quarter Q2 net outflows Q2 net inflows Q1 net inflows Mixed performers: Smaller focused firms, flows $6 billion and 11% of firms Consistent high performers: Large, diversified, consistent outperformance, flows $183 billion and 25% of firms Q1 net outflows Challenged: Active equities, investment performance challenges, flows $290 billion and 45% of firms Rebounders: Midsize firms with performance in right asset class, flows $0 and 17% of firms Source: Morningstar; McKinsey analysis McKinsey & Company To read the report, see “North American asset management: A year of shocks but few surprises,” December 14, 2020.