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The Markets August 17, 2015
Investors Shun U.S. Equity Despite Its Return Lead
International Equity funds led inflows again in July, according to Strategic Insight.
Reported by PLANADVISER Staff
Net inflows to stock and bond mutual funds and exchange-traded products totaled $12.9 billion in July, data from Strategic Insight, an Asset International company, shows.
Among actively managed funds, growth-oriented International Equity funds again led inflows to long-term products during the month, attracting $4.7 billion. Monthly outflows from U.S. Equity funds totaled $12.1 billion in July; active products continued to see outflows while indexed U.S. Equity exchange-traded funds (ETFs) attracted $14.6 billion of net new investment.
Net intake to Bond funds totaled $900 million in July. Top inflow Taxable Bond strategies during the month included Government Short Maturity ($3.4 billion) and Global Bond ($2.3 billion). Corporate High Quality strategies led monthly net redemptions during the month with $2.8 billion of net outflows.
Strategic Insight says fund returns by asset class were led by U.S. Equity in July, registering an asset-weighted average one-month cumulative return of 1.3%. Taxable and Tax-Free Bond fund average returns were also positive at 0.3% and 0.6%, respectively. International Equity funds declined 0.4% during the month.
Net subscriptions to Money Market funds totaled $44.6 billion in July.
More information about Strategic Insight is at www.sionline.com.