Active long-term funds saw a spike in outflows during June, led by equity net redemptions. Active funds experienced net withdrawals of US$22.1 billion in June, compared to only US$1.9 billion in outflows in May.
Passive funds experienced a significant bounce in net deposits in June after a pullback in May. Net inflows totalled US$48.2 billion in June against US$6.3 billion in May. While the more tactically-oriented ETF investor base led that pullback in May with net redemptions of US$12.4 billion, they saw a strong return to the market in June with inflows of US$38.2 billion. Index mutual funds saw a slight decline to net deposits of US$10.1 billion in June after inflows of US$18.8 billion during the prior month.
Taxable Bond funds have served as the lead asset gatherers across both active and passive funds in the year-to-date period through June, amassing net sales of US$190.9 billion. Municipal bond funds were the second highest inflow-gathering segment at US$51.0 billion for the month. Passive funds held the lead within Taxable Bond at US$119.5 billion, while active funds accounted for nearly all of Tax-Free Bond flows at US$48.3 billion.
Even as investors saw a return to riskier strategies during June, Money Market funds continued to see strong net deposits of US$34.1 billion. This did represent a notable fall-off from the US$79.9 billion garnered in May though. Taxable Money Market funds led inflows during June at US$21.3 billion, while Prime funds experienced the largest net commitments during the YTD period at US$90.9 billion.