Snapshot of US Monthly Fund Highlights - July 2016 Report

Net flows to long-term mutual funds and ETPs totalled US$36 billion in July. Beyond these aggregate totals, however, the divergence in demand between active and passive strategies remained significant. Passive funds led demand with US$61 billion of net commitments (including US$43 billion to ETPs), while actively managed mutual funds experienced US$25 billion of net redemptions in total during July.

Demand for Taxable Bond funds surged in July, with mutual funds and ETPs attracting US$33 billion of net inflows during the month. This total represented the largest monthly intake for Taxable Bond strategies since January 2013. Taxable Bond flows during July were split fairly evenly between active and passive strategies, with US$15.5 billion going to active funds and US$17.7 billion to passive exposures.

Emerging Market Bond strategies experienced an increase in demand – as the search for yield intensifies around the world. Actively managed Emerging Market Bond funds attracted US$3 billion of net inflows during July, reversing the trend of US$4.4 billion in net redemptions during the first half of 2016, while Emerging Market Bond ETPs garnered US$1.8 billion during the month.

Money Market funds garnered US$15.6 billion of net inflows in aggregate during July. Within this total, the forthcoming regulatory reform continued to significantly impact Money Market allocations. Government funds attracted roughly US$75 billion of net inflows during July, while prime funds saw US$50 billion of net redemptions.