Assets under management for the U.S. fund business (including conventional funds and ETFs) fell by a combined $1.390 trillion in Q3 2022. However, the lion’s share of those declines can be attributed to performance rather than net outflows. After the third consecutive 75-basis-point (bps) interest rate hike, rising inflationary concerns, growing fears of a recession, an unwavering commitment by the Federal Reserve to tame inflation, and an emerging European energy crisis related to Russia’s war in Ukraine, equity and fixed income securities once again suffered sharp declines during the quarter, with equity mutual funds posting their worst September returns since

U.S. investors pushed equity funds to their fourth consecutive quarter of plus-side performance in Q1 2021. Investors embraced the $1.9 trillion stimulus package signed into law by President Joe Biden in late March, the Federal Reserve Board’s commitment to keeping interest rates low through at least 2023, and the rollout and improving distribution of COVID-19 vaccines. All of these factors contributed to relatively strong returns for equity funds and ETFs during the quarter, with the average equity fund posting a 6.31% return, with Lipper’s Sector Equity Funds macro-classification (+8.94%) leading other macro-classifications. However, fixed income investors evaluated what a third

A third round of stimulus payments, improving COVID-19 vaccine distributions, and talks of a $2.3 trillion infrastructure package pushed the broad-market indices to their fourth consecutive month of plus-side performance. The average equity fund (including ETFs) experienced a 6.31% return for Q1 2021 and whopping one-year return of 61.39%. Despite ongoing inflationary concerns, which drove the 10-year Treasury yield up 81 basis points during the first quarter to 1.74%—its highest closing value since January 23, 2020—and President Joe Biden’s plan to raise taxes on corporations and wealthy individuals, investors injected $454 billion into mutual funds and ETFs during Q1, using