International Equity Attracts Investors in August

August saw a $15.3 billion net inflow to equity products, attributable to a $15.1 billion net intake to international equity funds. Flow-leading international equity strategies included international emerging market equity ($2.7 billion), international equity alternative – other ($1.3 billion) and international total return ($1.2 billion).

Net flows to U.S. equity were light at $200 million, but successful objectives in the space included natural resources ($1 billion) and income – mixed ($864 million).

Demand for bond funds in August persisted, with taxable bond funds attracting a net $10.3 billion and tax-free bond fund flows totaling $3.4 billion. Flow-leading objectives among bond funds included corporate bond general ($3.1 billion), government general ($2.8 billion) and government intermediate maturity ($2.4 billion).

All broad asset classes produced positive average returns in August, led by 3.8% on U.S. equity funds, while mixed equity markets outside the U.S. returned an average 1.5% for international equity funds. Taxable bond and tax-free bond funds averaged 0.9% and 1.3% returns, respectively.

Money market fund net deposits totaled $34.9 billion in August.