October Rebound in Equity Fund Flows

Strategic Insight data shows long-term mutual funds and exchange-traded products secured significantly stronger inflows in October. 

Net new investment to long-term mutual funds and exchange-traded products totaled $31.7 billion in October, according to data from Strategic Insight (SI), an Asset International company.

According to SI’s Monthly Highlights report for October 2015, equity products netted $10.4 billion on $14.3 billion of inflows to U.S. Equity exchange-traded funds (ETFs). Actively managed sector-specific U.S. equity offerings, on the other hand, saw $753 million of inflows during the month.

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SI finds international equity funds captured $7.6 billion, including $1.6 billion of inflows to actively managed growth-oriented strategies, while taxable bond funds attracted a net $18.3 billion during the month on demand for U.S. corporate bond funds with high yield and intermediate maturity themes. Tax-free bond funds netted $3 billion in October. Net new investment to bond funds totals $69 billion year-to-date.

Equity markets rallied in October producing strong positive monthly average returns for U.S. and international equity funds of 7.0% and 6.4%, respectively. Asset-weighted average returns for bond funds were also positive, with taxable products averaging 0.8%. Net deposits to money market funds totaled $47.7 billion in October.

Information on obtaining Strategic Insight reports is at www.sionline.com