Taxable bond funds top long-term fund flows - US Monthly Fund Highlights - September 2017 Report

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Long-term mutual funds and ETPs experienced net deposits of US$43.4 billion in September, a slight increase from the US$38.6 billion in net new flows seen in August. Passive strategies led net flows among long-term funds at US$46.8 billion (including US$23.6 billion to ETPs), while active funds experienced net redemptions of US$3.4 billion.

Taxable Bond funds were the highest monthly net flow segment among long-term funds at US$36.2 billion, up from August’s US$29.2 billion. Passive Taxable Bond funds led in net inflows at US$20.2 billion, compared to US$16.0 billion into active Taxable Bond Funds. Tax-Free Bond funds garnered US$3.1 billion in net flows in September, slightly down from the US$4.5 billion seen in August.

International Equity funds saw a slight drop in September net new flows, falling to US$13.1 billion from US$14.5 billion in August and US$19.5 billion in July. Domestic Equity funds continued to experience net redemptions in September at US$9.0 billion, largely in line with the US$9.6 billion in outflows seen last month.

Flows into Money Market funds in September (US$25.5 billion) saw a significant fall from their net deposits in August (US$74.4 billion). Taxable Money Market funds were responsible for this change, seeing net deposits drop to US$26.7 billion in September from US$76.2 billion in August. Tax-Free Money Market funds conversely saw net redemptions of US$1.3 billion in September, compared to US$1.8 billion in August.