U.S. Equity Funds See $10B in Outflows in May

In addition, International/Global Equity funds experienced $7.8 billion of net outflows during the month, Strategic Insight data shows.

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.

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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.

More information about Strategic Insight is at www.sionline.com.

Fidelity Adds Funds and Share Classes to Index Lineup

Fidelity is launching three new low-cost index funds. 

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.

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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.

For more information about, visit www.fidelity.com

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