Global long-term mutual funds experienced aggregate net redemptions of US$70 billion during the month of October. Local Asia and Latin America were the only regions to post positive flows, with approximately US$33 billion and US$3 billion in net deposits, respectively.
Meanwhile, Crossborder saw the largest aggregate redemption of any region, with US$47 billion in net outflows, followed by the U.S. with US$45 billion and Local Europe with US$14 billion.
Passively managed funds collected US$49 billion in new investor money, while active funds experienced outflows of US$119 billion. Investors in Local Asia were the largest benefactors of passive funds, with approximately US$28 billion in aggregate contributions. Globally, equity funds, were the overall best-selling asset class, with US$5 billion in net subscriptions.
Vanguard was once again the best-performing manager during the month, with US$10 billion in net new cash. About 75% of Vanguard’s aggregate flows were due to its best-selling fund; the Vanguard Total Stock Market Index, which attracted approximately US$8 billion in new investor money. The fund has about US$708 billion in assets under management as of October 2018 and is sold in the U.S., Chile and Japan.