Investors Preferred Equities in November

Investors worldwide contributed $40 billion of new cash flows to long-term mutual funds in November, two-thirds of which went to equity funds.

The popularity of equity funds reflects continued improvement in stock market sentiment, said Strategic Insight, an Asset International company. Bond funds added $6 billion globally, indicating at least a temporary pause of persistently strong inflows to fixed income products since early 2009.   

On a regional level, the U.S. led the way with $18 billion in net flows, followed by cross-border international funds ($16 billion) and local Asia funds ($8 billion), while local Europe funds experienced $6 billion in net redemptions for the month.  

U.S. equity funds saw a $16 billion net inflow in November, while U.S. bond funds posted no net change. Eleven billion dollars flowed into international/offshore equity funds during the month.  

SI’s Global Mutual Fund Flow Watch report shows that for Asia funds, the equity sentiment was not that strong; Asia equity funds posted a net outflow of $1 billion in November, while Asia bond funds saw a $7 billion net inflow.  

Year-to-date through November investors worldwide pumped $845 billion into long-term mutual funds, led by U.S. funds which posted a net $401 billion inflow. International/offshore funds took in $275 billion, while local Europe funds took in $81 billion. Asia funds posted a net inflow of $65 billion.  

Equity funds took in $133 billion year-to-date through November, while bond funds posted a net $566 billion in new cash.