Bond funds attracting new money - Global FlowWatch - April 2019 Results

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Global long-term mutual funds recorded US$56 billion in net new money during the month of April. The U.S. led with US$24 billion, followed by Local Asia with US$19 billion in net flows, Crossborder and Local Europe had positive inflows with a combined US$13 billion. Meanwhile, Latin America suffered US$300 million in net redemptions.

Passively managed funds garnered US$74 billion in new investor money, while active funds experienced outflows of US$19 billion. Investors in Local Asia were the largest benefactors of active funds, contributing an aggregate US$10 billion in net new money. Overall, bond funds attracted the most investor demand out of any asset class, with US$87 billion in net subscriptions.

Vanguard was once again the best-performing manager during the month, with US$17 billion in net new cash. Nearly 29% of Vanguard’s aggregate flows were due to its best-selling fund, the Vanguard Total Bond Market II Index, which attracted approximately $5 billion in new investor money. The fund offers investors broad exposure to U.S. investment grade bonds.