Passive inflows outpace active flows - US Monthly Fund Highlights - February 2020

Active fund flows remained positive in February at US$8.8 billion. This represented a notable decrease from net deposits of US$19.6 billion in January, but this decrease came more through moderated flows across asset classes rather than a stark reversal within any specific grouping.

Inflows into passive funds continue to outpace active flows at US$17.5 billion, while also experiencing a substantial pullback from January net deposits of US$68.6 billion. Mutual funds were the leading inflow vehicle for February at US$10.6 billion, having garnered $23.8 billion in January.

Even as Taxable Bond funds saw a relative pullback from January, they overwhelmingly led among all asset classes in the year-to-date period. Taxable Bond funds pulled in net deposits of US$81.2 billion over the first two months of the year, followed by International Equity with inflows of US$32.4 billion.

Money Market funds had seen substantial outflows in January on a renewed sense of bullishness. This trend substantially reversed itself in February as investors returned to short-term funds with force. The segment saw net inflows of US$31.5 billion, with Taxable Money Market funds pacing inflows at US$33.4 billion.