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The Markets October 14, 2015
Investor Appetite for Equities Remains Anemic
Investor demand for international equity offerings tumbled again, attracting just $3.8 billion in September, according to Strategic Insight.
Reported by PLANADVISER staff
Equity markets ended the month lower again in September, data from Strategic Insight, an Asset International company, shows. While small and mid-cap stocks were hardest hit during the month, the declines sent one-month average fund returns negative for U.S. equity (-3.2%) and international equity (-3.6%). Taxable bond fund average returns were also in the red, returning -0.7%.
Long-term mutual funds and exchange-traded products experienced net redemptions totaling $16.6 billion in September. Monthly net outflows from equity products totaled $6.9 billion, on $10.7 billion of net redemptions from U.S. Equity. Driven by outflows from diversified active large-cap funds, active U.S. equity mutual funds saw outflows of $14.7 billion in the month. International equity funds captured $3.8 billion in September, a drop from July’s $24.4, with index mutual funds netting $5.6 billion.
Taxable bond funds redeemed a net $9.4 billion in September on outflows from global and high yield strategies. Government short maturity funds netted $3.3 billion during the month. Despite quarterly outflows of $27 billion from bond funds, year-to-date bond mutual funds and exchange-traded funds (ETFs) have attracted $46.9 billion.
Net redemptions from money market funds totaled $11.5 billion in September.
More information about Strategic Insight is at www.sionline.com.