The Markets May 16, 2016

Corporate Bonds Lead Fixed-Income Inflows

The latest mutual fund flow numbers put out by Strategic Insight show healthy inflows for a variety of bond fund types. 
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Net new investment to long-term mutual funds and exchange-traded funds (ETFs) totaled $15.2 billion in April, according to Strategic Insight (SI), an Asset International company.

The SI fund flow data shows bond funds captured $27.4 billion of net inflows, while equity funds experienced net redemptions of $12.2 billion. At the same time, active U.S. and international/global equity funds saw outflows in April totaling $26.5 billion, while indexed equity added new investment totaling $14.3 billion.

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Net outflows from active funds were driven by redemptions from large capitalization growth-oriented strategies, SI explains. Passive U.S. and foreign large blend categories were relatively strong inflow segments of the market in April.

Among Bond funds, active and passive strategies attracted new investment totaling $17.6 billion and $9.7 billion, respectively, SI finds. Top-inflow objectives in the space included corporate bond general (+$10.2 billion), corporate intermediate maturity (+$6.6 billion), and corporate high quality (+$1.1 billion).

With money market reforms coming into effect later this year, net redemptions from money market funds during the month totaled $35.8 billion.

Information on obtaining SI research is here. 

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