For the first month in three, investors were net purchasers of mutual fund assets, injecting $9.4 billion into the conventional funds business (excluding ETFs) for November. Despite equity funds posting plus-side returns for the month, worries about slowing global growth, global trade, and declining oil prices kept investors on edge. For the second month in a row, the fixed income funds macro-group witnessed net outflows, handing back $26.4 billion for the month. And for the seventh consecutive month, stock & mixed-asset funds witnessed net outflows (-$47.1 billion for November, their largest monthly net outflows since November 2016), while money market funds (+$82.9 billion, for their second month of inflows in four) witnessed the only net inflows—their largest since December 2008.
For the fifth month in a row, ETFs overall witnessed net inflows, taking in $49.0 billion for November—their largest monthly net inflows since January 2018. Authorized participants (APs, those investors who actually create and redeem ETF shares) were net purchasers of stock & mixed-asset ETFs, adding $33.2 billion to the equity ETF coffers. And for the fortieth month in 41, they were net purchasers of bond ETFs—injecting $15.8 billion for November. APs were net purchasers of four of the five equity-based ETF macro-classifications: USDE ETFs (+$22.4 billion), World Equity ETFs (+$11.8 billion), Alternatives ETFs (+$682 million), and Mixed-Asset ETFs (+$239 million), while being net redeemers of Sector Equity ETFs (-$1.9 billion). In this segment I highlight the November fund-flow results for both types of investment vehicles.
Highlights:
- For the first month in three, mutual fund investors were net purchasers of fund assets, injecting $9.4 billion into the conventional funds business for November.
- For the second month running, fixed income funds (-$26.4 billion for November, their largest monthly net outflows since August 2013) witnessed net outflows, while for the seventh month in a row, investors were net redeemers of stock & mixed-asset funds (-$47.1 billion). Money market funds (+$82.9 billion) witnessed the only net inflows.
- For the fifth month running, authorized participants (APs) were net purchasers of ETFs, injecting $ 49.0 billion for November. APs were net purchasers of stock & mixed-asset ETFs (+$33.2 billion) and fixed income ETFs (+$15.8 billion).
- However, for the second month in a row, APs were net redeemers of Sector Equity ETFs (-$1.9 billion for November).
Click here to download the November 2018 FundFlows Insight Report: Mutual Fund Investors and APs Take Different Paths in November.
