Long-term funds see inflows of US$28.9bn - US Monthly Fund Highlights - June 2020

Active long-term funds have witnessed a gradual recovery across the second quarter and saw inflows of US$28.9 billion in June, up from inflows of US$21.3 billion in May. Net flows for the first half of the year remained sharply negative at US$241.4 billion. Mutual funds were the chief focus of active demand in June, with net deposits of US$23.0 billion compared to inflows of US$5.9 billion for ETFs.

Index funds collectively gathered inflows of US$33.5 billion in June, up significantly from the US$11.8 billion garnered in the prior month. ETFs paced passive flows for the month, pulling in net commitments of US$41.8 billion against outflows of US$8.4 billion from passive mutual funds.

Having witnessed the most severe downturns in March, Taxable Bond funds have experienced a strong enough recovery to become the highest inflow-gathering asset class of the first half of 2020. Taxable Bond funds collectively saw inflows of US$47.0 in H1’20, followed by Alternative and Commodity funds at US$33.8 billion.

Equity flows experienced pullbacks across active and passive funds, but a sign of restored investor confidence can be seen within Money Market funds. The grouping saw their deepest monthly withdrawals of the year at US$131.2 billion.