YTD net deposits hit US$72bn - Monthly US fund highlights - May 2016

Key highlights:

Net new investment to long-term mutual funds and ETFs totalled US$2.9 billion in May, lifting year-to-date net deposits to US$72 billion.

Monthly net redemptions from US Equity totalled US$10.7 billion, as outflow pressures from active large-cap and growth oriented strategies continued. Among active funds capturing new investment in May, Hybrid strategies collected a net US$695 million during the month, while Natural Resources (US+$315 million) and Real Estate (US+$249 million) led inflows to active sector-specific offerings. International/Global Equity funds experienced US$7.8 billion of net outflows during the month. International Equity Alternatives led inflows among active funds in the space.

Bond funds drove inflows to the industry in May on positive net demand for both Taxable (US+$13.2 billion) and Tax-Free products (US+$8.2 billion). Active Taxable Bond funds added US$5.6 billion in May, while index Taxable Bond funds and ETFs added US$7.6 billion. Active taxable short & intermediate-term strategies netted US$5.2 billion on the month.

Monthly net deposits to Money-Market funds totalled US$1.7 billion.