Global long-term mutual funds collected US$65 billion in net new money during July, pushing year-to-date net fund flows to US$598 billion. Local Asia led gains, with over US$19 billion in net deposits, followed by Crossborder and Local Europe, which garnered US$8 and US$7 billion respectively. Meanwhile, the Americas experienced collective outflows of US$21 billion, 96% of which, is attributed to redemptions in the U.S.
Active funds collected US$13 billion in new investor money, while passively managed funds experienced inflows of US$52 billion. Investors in Local Asia were the largest benefactors of active funds, with US$19 billion aggregate contributions, however, this was offset by the US$20 billion withdrawn from active funds in the U.S. Globally, bond funds attracted the most investor demand out of any asset class, with US$36 billion in net subscriptions.
Vanguard was the best performing manager during the month, with US$17 billion in net new cash. About 27% of Vanguard’s aggregate flows were due to its best-selling fund; the Vanguard Total International Stock Index fund, which attracted nearly US$5 billion in new investor money. The fund has US$356 billion in AUM as of July, and offers investors exposure to be developed and emerging markets, with the exception of the U.S.