Long-term mutual funds and ETPs experienced net redemptions of US$1.7 billion in December. Active and passive strategies continued to experience divergent trends in net investments. Passive funds led demand with US$62.3 billion of inflows (including US$45.7 billion to ETPs), while actively managed funds experienced aggregate net redemptions of US$64 billion in December.
Taxable Bond funds experienced the most net deposits among long-term funds at US$12.3 billion, a rebound from November’s outflows. Taxable Bond funds experienced net inflows in both passive and active segments, though passive funds brought in US$10.0 billion compared to only US$2.3 billion for active Taxable Bond funds.
Tax-Free Bond funds in December experienced their greatest monthly net redemptions of 2016 at US$16.3 billion.
Domestic Equity funds led Equity funds with US$8.0 billion in net deposits, while International Equity funds saw outflows of US$5.7 billion. Both segments experienced net redemptions for 2016 as a whole. Equity outflows were concentrated among active products (US$48.8 billion) while passive Equity funds experienced inflows of US$51.1 billion.
Growth & Income, which includes large-capitalisation strategies, led inflows among exchange-traded products in December, bringing in US$22.4 billion. This represents the highest net inflows of any ETP objective in any month of 2016, surpassing the record total the objective achieved in November.