Net new investment to long-term mutual funds and exchange-traded
funds (ETFs) totaled $2.9 billion in May, lifting year-to-date net
deposits to $72 billion, according to Strategic Insight, an Asset
International company.
Monthly net redemptions from U.S. Equity
totaled $10.7 billion, as outflow pressures from active large-cap and
growth oriented strategies continued. Among active funds capturing new
investment in May, Hybrid strategies collected a net $695 million during
the month, while Natural Resources ($315 million) and Real Estate ($249
million) led inflows to active sector-specific offerings.
International/Global
Equity funds experienced $7.8 billion of net outflows during the month.
International Equity Alternatives led inflows among active funds in the
space.
Bond funds drove inflows to the industry in May on
positive net demand for both Taxable ($13.2 billion) and Tax-Free
products ($8.2 billion). Active Taxable Bond funds added $5.6 billion in
May, while index Taxable Bond funds and ETFs added $7.6 billion. Active
taxable short & intermediate-term strategies netted $5.2 billion on
the month.
Monthly net deposits to Money Market funds totaled $1.7 billion.
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Fidelity Investments announced a series of enhancements to
its line-up of index mutual funds, including the launch of three new equity
funds, replacing the Spartan brand name, and expanding the availability of institutional share classes.
With the expansion, the firm now offers 19 equity, fixed-income
and hybrid index mutual funds, 13 Fidelity Freedom Index Funds, and 12 passive
ETFs.
Colby Penzone, senior vice president for Fidelity’s Investment
Product Group, says the enhancements build on Fidelity’s ongoing commitment to “provide
access to a wide-array of high-quality, low-cost index funds, as well as
managed solutions.”
The three new funds are the Fidelity Large Cap Growth Index
Fund, the Fidelity Large Cap Value Index Fund, and the Fidelity Total
International Index Fund. Each new fund is offered with multiple share classes “at
very competitive prices.” These include both institutional ($5 million minimum
investment, generally) and “institutional premium” ($100 million and up) share classes.
“Each fund will attempt to replicate the performance of its
respective index, before expenses, by normally investing at least 80% of its
assets in securities included in the index,” the firm explains.
Additional details include the following:
Fidelity
Large Cap Growth Index Fund seeks to provide investment results that
correspond to the total return of stocks of large capitalization U.S.
companies. The fund will normally invest at least 80% of its assets in
securities included in the Russell 1000 Growth Index.
Fidelity
Large Cap Value Index Fund seeks to provide investment results that
correspond to the total return of stocks of large capitalization U.S. companies.
The fund will normally invest at least 80% of its assets in securities
included in the Russell 1000 Value Index.
Fidelity
Total International Index Fund seeks to provide investment results
that correspond to the total return of foreign developed and emerging
stock markets. The fund will normally invest at least 80% of its assets in
securities included in the MSCI ACWI (All Country World Index) ex USA
Investable Market Index (IMI) and in depository receipts representing
securities included in the index.
Additionally,
Fidelity has replaced the “Spartan” brand within its line-up of index
mutual funds with the Fidelity name. For example, the Spartan 500 Index Fund is
now named the Fidelity 500 Index Fund. “This move creates consistency in
branding across Fidelity’s diverse product line,” according to the firm. “As
part of this effort, Fidelity has also renamed two of its four underlying index
fund share classes. The Fidelity Advantage Class has been renamed ‘Premium
Class’ and the Fidelity Advantage Institutional Class has been renamed ‘Institutional
Premium Class.’”
Finally, Fidelity also expanded the availability of its index mutual
fund line-up. Effective immediately, the company’s Institutional share classes
(Institutional and Institutional Premium) are available to investors on and off
the Fidelity platform, both retail and intermediary, provided they meet
eligibility requirements.