US Core Quarterly & Monthly Reports - Highlights December 2021
/Active long-term funds recorded their sharpest withdrawals of the year at US$59.9 billion, having recorded net redemptions of US$8.9 billion during November. While outflows were deepest among U.S. equity funds (US$45.3 billion), the pullback applied across every asset class for the month. Only municipal bond funds gathered positive demand during the month at US$2.5 billion.
Index funds conversely saw increased net deposits during December at US$93.2 billion from US$70.3 billion during the prior month. This served as the highest total brought in by passive funds since March when they gathered inflows of US$106.6 billion. ETFs ultimately recorded their highest monthly intake for the year at $101.2 billion.
Active and passive long-term funds collected inflows of US$33.3 billion in the aggregate, which represented the lowest monthly total for the year. Still, the year as a whole set records for fund demand with net deposits of US$1.1 trillion. Passive funds ended the year with historic inflows of US$923.9 billion.
Sustained market volatility prompted renewed flows into money market funds. The asset class brought in net deposits of US$131.2 billion, up from an already elevated US$80.6 billion in November and representing the highest monthly total of the year. Flows for 2021 overall totalled US$413.5 billion.
