The MarketsJuly 17, 2014

June Sees Expanded Allocations to International Funds

Long-term funds netted $47 billion in June, increasing the year-to-date inflows to $266 billion, according to Strategic Insight (SI).

Reported by Kevin McGuinness

SI, an Asset International company, also finds that for June, U.S. Equity ($19.0 billion) led inflows among fund types on strong aggregate demand for exchange-traded funds (ETFs), and actively managed objective-specific demand for Natural Resources ($2.2 billion) and Income-Mixed ($1.4 billion).

International Equity ($17.6 billion) saw another month of consistent net intake as allocations to International Total Return ($2.5 billion) and International Emerging Market Equity ($2.1 billion) expanded.

Demand for taxable bond funds ($7.9 billion) were led by active objectives Corporate Bond General ($7.1 billion) and Global Bond General ($2.7 billion) in June. Tax-free bonds also experienced $2.4 billion of net investments during the month.

Equity funds returned strong asset-weighted one-month returns despite periods of volatility in June, with U.S. Equity returning 2.7% on the period and International Equity returning 1.6%. Sovereign debt objectives led returns among taxable bond funds.

More information about Strategic Insight can be found at http://www.sionline.com. Subscriber’s may view SI’s Monthly Fund Industry Review here.