Investors Took $10B Out of U.S. Equity Funds in May

Outflow pressures from active large-cap and growth oriented strategies continued, says Strategic Insight.

Net new investment to long-term mutual funds and exchange-traded funds (ETFs) totaled $2.9 billion in May, lifting year-to-date net deposits to $72 billion, according to Strategic Insight, an Asset International company.

Monthly net redemptions from U.S. Equity totaled $10.7 billion, as outflow pressures from active large-cap and growth oriented strategies continued. Among active funds capturing new investment in May, Hybrid strategies collected a net $695 million during the month, while Natural Resources ($315 million) and Real Estate ($249 million) led inflows to active sector-specific offerings.

International/Global Equity funds experienced $7.8 billion of net outflows during the month. International Equity Alternatives led inflows among active funds in the space.

Bond funds drove inflows to the industry in May on positive net demand for both Taxable ($13.2 billion) and Tax-Free products ($8.2 billion). Active Taxable Bond funds added $5.6 billion in May, while index Taxable Bond funds and ETFs added $7.6 billion. Active taxable short & intermediate-term strategies netted $5.2 billion on the month.

Monthly net deposits to Money Market funds totaled $1.7 billion.

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