Long-term mutual funds and exchange-traded products (ETPs)
experienced net deposits of $58.1 billion in January, a significant
improvement over the $5.6 billion in net deposits seen in December,
according to Strategic Insight, parent company of PLANADVISER.
strategies continued to lead demand among long-term funds with inflows
of $71.9 billion (including $39.2 billion to ETPs). While actively
managed funds experienced aggregate net redemptions of $13.7 billion,
these outflows were much less severe than the $63 billion in outflows
actively managed long-term funds experienced in December.
Bonds experienced the highest net deposits among long-term funds at
$32.9 billion. Taxable Bond funds experienced net inflows in both
passive ($22 billion) and active ($10.9 billion) segments. Tax-Free Bond
funds in January experienced a rebound in net flows of $4.4 billion
after having seen net outflows of $16.3 billion in December.
Equity funds led Equity funds overall with $15.3 billion in net
deposits. Domestic Equity funds meanwhile saw inflows of $5.5 billion.
Equity outflows were concentrated among active products ($28.7 billion)
while passive Equity funds experienced inflows of $49.5 billion.
Money Market funds experienced net redemptions of $44.6 billion in
January, primarily through outflows from Taxable Money Market funds.
Prime Money Market funds had been the leading contributor to outflows
from Taxable Money Market funds throughout 2016. But, in January, Prime
Money Market funds saw inflows of $5.8 billion, while Government and
Treasury Money Market funds led outflows at $30.5 billion and $20