Global long-term mutual funds recorded US$10 billion in net new money during the month of May. Latin America led with US$13 billion, followed by Local Asia with US$12 billion in net flows. Meanwhile, the U.S. saw the largest aggregate redemption of any region, with US$7 billion in net outflows. Crossborder and Local Europe suffered US$4 billion and US$3 billion in net redemptions, respectively.
Passively managed funds garnered US$21 billion in new investor money, while active funds experienced outflows of US$11 billion. Investors in Latin America were the largest benefactors of active funds, contributing an aggregate US$12 billion in net new money. Overall, bond funds attracted the most investor demand out of any asset class, with US$58 billion in net subscriptions.
Vanguard was once again the best-performing manager during the month, with US$20 billion in net new cash. Nearly 33% of Vanguard’s aggregate flows were due to its best-selling fund, the Vanguard Total Stock Market Index, which attracted approximately US$6.5 billion in new investor money. The fund offers investors exposure to the entire U.S. equity market.