Non Domestic Equity Funds Continue to Attract Money

In every year except one since the global financial crisis non domestic equity funds have experienced overall net inflows. The one exception occurred in 2012, when the group suffered $3.0 billion of net outflows. Conversely, domestic equity funds have had net outflows every year since the global financial crisis except for 2013, when the group took in just over $79 billion of net new money.

This trend has been amplified so far in 2015. The gap between the two types of funds has never been so wide, with non domestic equity funds experiencing positive flows of over $104 billion for the year to date, while domestic equity funds have seen almost $101 billion leave their coffers.

The positive flows into non domestic equity funds this year have been dominated by funds in Lipper’s International Multi-Cap Core (IMLC) classification; the group has taken in $72.2 billion of net new money, while International Large-Cap Core Funds (ILCC) and Emerging Markets Funds have contributed $14.1 billion and $6.1 billion of net inflows to the non domestic equity funds’ total positive flows.

Vanguard Total International Stock Index Fund (VGTSX) has taken in the lion’s share of the net new money within IMLC, with net inflows of over $54 billion for the year so far. The activity within ILCC has been a little more widespread, Bridge Builder International Equity Fund (BBIEX, +$2.3 billion), Ivy International Core Equity Fund (IVIAX, +$1.8 billion), and T Rowe Price Overseas Stock Fund (TROSX, +$1.5 billion) contributing the most to the group’s total.

Within the Emerging Markets Funds classification there have been seven funds that have taken in over $1 billion of net new money for the year to date. The largest net inflows belong to two Fidelity funds: Fidelity Strategic Advisers Emerging Markets Fund (FSAMX, +$3.5 billion) and Fidelity Series Emerging Markets Fund (FEMSX, $2.7 billion).