Global long-term mutual funds experienced aggregate net redemptions of US$47 billion, marking the first period of global net outflow over the last 12 months. Local Europe was the only region to post positive flows, with US$4 billion in net deposits.
At the other end of the spectrum, the U.S. saw the largest aggregate redemption of any region, with US$24 billion in net outflows. Crossborder, Local Asia, and Latin America saw outflows of US$12 billion, US$8 billion, and US$7 billion, respectively.
Active funds saw an exodus of US$66 billion in the one month period, but this was slightly offset by $19 billion garnered by their passive counterparts. Investors in Local Europe were the only benefactors of active funds, contributing an aggregate US$4 billion in net new money. At the macro level, all asset classes experienced net redemptions across all regions during June.
Vanguard was the bestselling manager during the month, with US$8 billion in net deposits. About 96% or US$7.2 billion of Vanguard’s net deposits for the month were captured by the Vanguard Total International Stock Index Fund. Currently, the passive fund holds about US$343 billion in AUM and offers investors exposure to stock markets across the globe, with the exception of the United States.