Long-term mutual funds and ETPs experienced net deposits of US$75.4 billion in March, slightly down from the US$79.4 billion in net new flows seen in February. Passive strategies accounted for nearly all of March’s net new flows at US$75.4 billion (including US$44.2 billion to ETPs). Active long-term funds experienced US$90 million in net outflows in March and US$102 million in outflows over the first quarter.
Taxable Bonds continued to experience the highest net deposits among long-term funds at US$41.0 billion. Over the course of the first quarter, Taxable Bond funds garnered flows of US$111.5 billion, while US Equity funds and International Equity funds experienced net deposits of US$45.8 billion and US$47.7 billion, respectively. Tax-Free Bond funds experienced minor inflows of US$1.2 billion in March.
International Equity funds took the lead among Equity funds in March with net flows of US$17.3 billion against US$15.1 billion raised in February. Domestic Equity funds experienced a decline in net new flows with US$15.9 billion in March, from US$24.5 billion in February.
Money Market funds saw stronger net redemptions in March (US$19.2 billion) than they had in February (US$2.1 billion). Taxable Money Market funds accounted for the greatest proportion of outflows at US$18.9 billion, led by the US$18.2 billion in net redemptions from government money market funds.