In September investors withdrew US$57 billion from long-term funds globally, the second consecutive month of net outflows this year. The aggregate year- to-date net contributions declined to US$733 billion through Q3.
'Other' funds, which include alternative investment, guaranteed and real estate products, garnered US$11 billion in net new money while all other asset classes experienced a collective $67 billion in net redemptions. Bond products recorded the largest outflows at US$37 billion followed by mixed vehicles at US$28 billion and equity funds at US$2 billion.
At the regional level, Canada and Local Europe were the only regions to see inflows during September, collecting around US$2 billion each. In comparison, Asia experienced the largest redemptions at US$26 billion, as large outflows from China (US$38 billion) more than offsetting the solid inflows in Japan (US$12 billion). The U.S.(including variable annuities), the cross-border space and Latin America also saw net outflows of US$24 billion, US$10 billion and US$2 billion during the month, respectively.