Money Market funds see drastic increase in deposits - US Monthly Fund Highlights - August 2017 Report

Long-term mutual funds and ETPs experienced net deposits of US$38.1 billion in August, a slight drop from the US$42.2 billion in net new flows seen in July. Passive strategies led net flows among long-term funds at US$42.0 billion (including US$28.5 billion to ETPs), while active funds experienced net redemptions of US$3.9 billion.

Taxable Bond funds experienced the highest monthly net deposits among long-term funds at US$30.0 billion, a slight decrease from July’s US$34.6 billion. Active Taxable Bond funds (US$17.9 billion) took the lead over passive Taxable Bond funds in (US$12.1 billion) in August. Tax-Free Bond funds experienced a minor increase in net inflows at US$4.5 billion.

Net new flows into International Equity funds fell to US$14.3 billion in August from US$19.4 billion in July. Domestic Equity funds experienced net redemptions in August at US$10.8 billion, though this was a less drastic level than the US$14.7 billion seen in July.

Money Market funds saw a drastic increase in net deposits to US$74.4 billion in August, from US$10.9 billion in July. Taxable Money Market funds were mostly responsible for this increase, with net inflows of US$76.2 billion. Government Money Market funds led the segment at US$37.6 billion. Tax-Free Money Market funds meanwhile saw net redemptions during the month at US$1.8 billion.