Global long-term mutual funds recorded US$44 billion in net new money during the month of January.
The U.S. led with US$21 billion, followed by Local Asia and Latin America, with approximately US$18 billion and US$14 billion in net new money, respectively. Meanwhile, Local Europe and Crossborder suffered a combined US$8 billion in net redemptions.
Passively managed funds garnered US$49 billion in new investor money, while active funds experienced outflows of US$5 billion. Investors in Latin America were the largest benefactors of active funds, contributing an aggregate US$14 billion in net new money. Overall, bond funds attracted the most investor demand out of any asset class, with US$50 billion in net subscriptions.
Vanguard was the best-performing manager during the month, with US$20 billion in net new cash. About 34% of Vanguard’s aggregate flows were due to its best-selling fund, the Vanguard Total Bond Market II Index, which attracted approximately US$7 billion in new investor money. The fund has about US$162 billion in assets under management as of January 2019.