For the first month in three investors were net redeemers of mutual fund assets, withdrawing $31.2 billion from the conventional funds business (excluding ETFs) for September. Despite the Federal Reserve’s hiking its key lending rate during September, for the seventh month in a row the fixed income funds macro-group witnessed net inflows, taking in $16.0 billion for the month. However, for the fifth consecutive month stock & mixed-asset funds witnessed net outflows (-$37.5 billion for September), while money market funds (-$9.7 billion) suffered net redemptions for the first month in three.
For the third month in a row ETFs overall witnessed net inflows, taking in $36.3 billion for September. Authorized participants (APs, those investors who actually create and redeem ETF shares) were net purchasers of stock & mixed-asset ETFs, adding $29.3 billion to the equity ETF coffers. And for the thirty-ninth consecutive month they were net purchasers of bond ETFs—injecting $7.0 billion for September. APs were net purchasers of four of the five equity-based ETF macro-classifications: USDE ETFs (+$23.4 billion), Sector Equity ETFs (+$5.8 billion), Alternatives ETFs (+$366 million), and Mixed-Asset ETFs (+$87 million), while for the fourth month in five they were net redeemers of World Equity ETFs (-$328 million). In this segment I highlight the September fund-flow results for both types of investment vehicles.
Highlights:
- For the first month in three mutual fund investors were net redeemers of fund assets, withdrawing $31.2 billion from the conventional funds business for September. Despite the Fed rate hike, for the seventh consecutive month fixed income funds (+$16.0 billion for September) witnessed net inflows, while for the fifth month in a row investors were net redeemers of stock & mixed-asset funds (-$37.5 billion). Money market funds (-$9.7 billion) also suffered net redemptions.
- For the first month in three Lipper’s World Equity Funds macro-classification witnessed net inflows, taking in $324 million for September.
- For the third month running APs were net purchasers of ETFs, injecting $36.3 billion for September. APs were net purchasers of stock & mixed-asset ETFs (+$29.3 billion) and bond ETFs (+$7.0 billion).
- For the fourth month in five World Equity ETFs (-$328 million for September) handed back net money.
Click here to download the September 2018 FundFlows Insight Report: Fund Investors Sour on Equity Funds in September, but APs Remain Confident.
