ISS U.S. Research Updates - Highlights May 2022
/Demand for active long-term funds fell further in May, reaching the deepest levels since March 2020. Outflows totalled US$108.9 billion in May after net redemptions of US$82.3 billion in April. Withdrawals were again most severe among fixed-income funds as taxable bonds saw outflows of US$53.0 billion in May and US$33.0 billion in April. Alternative and commodity funds were the only segment that continued to experience positive flows on an asset class level.
Passive funds witnessed an exceptional rebound as net inflows increased from US$3.5 billion in April to US$68.8 billion in May. This shift was greatest within domestic equity funds, which reversed from outflows of US$24.8 billion in April to net inflows of US$39.6 billion in May. Taxable bond funds recorded the second-highest aggregate inflows on an asset class level at US$18.1 billion.
Money market funds have achieved swings in demand worth tens of billions in dollars on a monthly basis throughout 2022. Short-term funds recorded minor outflows of US$5.4 billion in May, having faced much more drastic redemptions of US$73.8 billion in April and positive flows of US$7.8 billion in March.
