Steady Fund Flow Data Amid Equity Market Peaks and Troughs

Monthly long-term investment fund flow data from Strategic Insight, an Asset International company, shows net new investments to long-term mutual funds and exchange-traded funds (ETFs) totaled $17 billion in June.

Index mutual funds and ETFs collected a net $45.8 billion during the month, SI finds, while net outflows from long-term active funds totaled $28.8 billion. Actively managed U.S. and international equity redeemed $24.3 billion and $10.7 billion, respectively, in June.

According to SI, market segments with net inflows for the month among active equity, hybrid, and alternative funds included international managed futures (up $618 million), U.S. equity income-mixed ($434 million), and U.S. equity balanced ($381 million). At the same time, passive equity mutual funds netted $18.6 billion and equity ETFs collected $13 billion, led by $8.3 billion of investment to U.S. equity.

On the fixed-income side, SI finds active bond funds netted $6.1 billion of new investments during the month, “mainly on demand for muni-bond offerings.” Passive fixed-income products collected a net $14.2 billion in June. Among active taxable strategies exclusively, demand prevailed for corporate high quality ($3.0 billion) and corporate intermediate maturity ($2.3 billion) offerings.

Monthly net redemptions from Money-Market funds totaled $18.4 billion during the month, SI says.

Additional findings are at www.sionline.com.