As a result of a relatively good start to the Q4 corporate earnings season, improving inflationary figures, and strong January returns for both equity and fixed income funds, investors were net purchasers of mutual fund assets for the first month in 13, but they injected just $6.8 billion into the conventional funds business (excluding ETFs, which are reviewed in the section below). For the twenty-second month running, stock & mixed-assets funds experienced net outflows (-$30.7 billion—their smallest monthly outflows since July 2022). However, with the 10-year Treasury yield declining 36 basis points (bps) for the month, the fixed income funds macro-group—for the first month in five—witnessed net inflows, taking $21.8 billion. Money market funds (+$15.7 billion) attracted net new money for the fourth consecutive month.
For the ninth consecutive month, ETFs attracted net new money, taking in $45.1 billion for January. Authorized participants (APs—those investors who create and redeem ETF shares) were net purchasers of stock & mixed-assets ETFs—also for the ninth month in a row—injecting $20.0 billion into equity ETF coffers. For the twelfth month running, they were net purchasers of bond ETFs—injecting $25.2 billion for the month. APs were net purchasers of only two of the five equity-based ETF macro-classifications, padding the coffers of World Equity ETFs (+$20.2 billion) and Alternatives ETFs (+$3.8 billion) while being net sellers of U.S. Diversified Equity ETFs (-$664 million), Sector Equity ETFs (-$1.1 billion), and Mixed-Assets ETFs (-$2.4 billion).
In this report, I highlight the January 2023 fund-flows results and trends for both ETFs and conventional mutual funds (including variable annuity underlying funds).
Highlights:
- For the first month in 13, mutual fund investors were net purchasers of fund assets, injecting $6.8 billion into conventional funds for January.
- Fixed income funds (+$21.8 billion for January) witnessed net inflows for the first month in five, while money market funds (+$15.7 billion) attracted net money for the fourth month in a row.
- For the twenty-second straight month, investors were net sellers of stock & mixed-assets funds (-$30.7 billion).
- APs were net purchasers of ETFs, injecting $45.1 billion for January.
- And, for the twelfth straight month, fixed income ETFs (+$25.2 billion for January) witnessed net inflows while investors were net purchasers of stock & mixed-assets ETFs (+$20.0 billion).
- World equity ETFs (+$20.2 billion) attracted its largest monthly net inflows since January 2022.
Click here to download the January 2023 FundFlows Insight Report: Conventional Funds Attract Net New Money for the First Month in 13.
Refinitiv Lipper delivers data on more than 330,000 collective investments in 113 countries. Find out more.
Join a growing community of asset managers and stay up to date with the latest research from Refinitiv and partners to help you inform your investment decisions. Follow our Asset Management LinkedIn showcase page.
