Money market funds see drastic drop - US Monthly Fund Highlights - June 2017

Long-term mutual funds and ETPs experienced net deposits of US$62.6 billion in June, a slight decrease from the US$65.4 billion in net new flows seen in May. Passive strategies led net flows among long-term funds at US$55.6 billion (including US$42.6 billion to ETPs), while active funds saw US$7.0 billion in net inflows.

Taxable Bond funds continued to experience the highest monthly net deposits among long-term funds at US$33.2 billion, slightly down from May’s US$36.7 billion. The fund type saw nearly equivalent positive net demand across active (US$16.2 billion) and passive funds (US$17.0 billion) during the month. Tax-Free Bond funds experienced minor inflows of US$3.4 billion in June.

International Equity funds saw slightly lower net inflows at US$28.6 billion in June, down from the US$33.4 billion garnered in May. Net new flows to Domestic Equity funds remained negative at US$2.6 billion in June, but represented an improvement from May’s US$8.0 billion in net redemptions.

Money Market funds experienced a drastic downturn in net new flows during June, as both Taxable Money Market funds (US$35.7 billion) and Tax-Free Money Market funds (US$707 million) saw outflows. Government Money Market funds experienced the largest outflows at US$29.0 billion.