Long-term mutual funds and ETPs experienced net deposits of US$73.3 billion in October, a substantial increase from the US$43.3 billion in net new flows seen in September. Passive strategies accounted for nearly all net flows among long-term funds at US$73.0 billion (including US$51.3 billion to ETPs), while active funds experienced minor positive net flows of US$333 million.
Taxable Bond funds remained the highest monthly net flow segment among long-term funds at US$40.4 billion, up from September’s US$36.2 billion. Active Taxable Bond funds garnered US$21.1 billion during the month, a narrow lead over the US$19.3 billion seen by passive Taxable Bond funds. Tax-Free Bond funds had US$2.6 billion in net flows in October, slightly down from the US$3.1 billion seen last month.
Equity funds saw the greatest improvement in net sales in October, growing to US$30.3 billion from US$4.0 billion in September. International Equity funds had net new flows of US$19.1 billion, up from US$13.1 billion in October, while US Equity funds reversed September’s outflows (US$9.1 billion) to experience US$11.3 billion in net inflows in October.
American Balanced was the top inflow-gathering active US Equity mutual fund in October at US$495 million. BlackRock Advantage Large Cap Growth was the second highest inflow-gathering fund at US$360 million. This fund was formerly the BlackRock Flexible Equity fund and transitioned to a quantitative analysis portfolio management style this past summer.