International Equity Posts Strong May Flows

Strategic Insight (SI) reports net inflows across stock and bond fund investments totaled $21.7 billion during May—including a net intake for equity funds totaling $14.7 billion.

International equity funds posted an impressive $25.9 billion inflow, while U.S. Equity funds saw monthly net outflows of $11.2 billion. The U.S. outflows were concentrated in actively managed mutual funds, while net subscription to passive funds was flat. From the performance perspective, U.S. Equity funds returned a weighted average +1.2% in May, while international equity and bond funds ended the month slightly lower at -0.4% and -0.2%, respectively.

These results come after U.S. equity outflows were seen in both active mutual funds and index ETFs during April 2015. During May, bond funds netted $7 billion, led by demand for intermediate-term U.S. and global corporate bond funds.

Net subscriptions to money market funds totaled $30.6 billion in May, according to Strategic Insight. More information about Strategic Insight is at www.sionline.com.