All asset classes see improved net flows - US Monthly Fund Highlights - January 2020

Long-term active fund flows rebounded substantially in January, growing to net deposits of US$18.9 billion after outflows of US$24.9 billion at the end of December 2019. All asset classes experienced improved net flows compared to December, even as Allocation and US Equity funds remained in net outflows.

Passively-managed mutual funds and ETFs experienced positive sales momentum in January, seeing net inflows of US$68.5 billion against US$58.6 billion from December. ETFs served as the primary inflow vehicle and saw nearly equivalent levels of net flows across January (US$44.6 billion) and December (US$44.0 billion).

Turns towards cautious investments and an ageing workforce have served to direct extensive investments towards fixed-income. Taxable Bond served as the top inflow-gathering asset class among active and passive funds and its fund flows totalled US$60.8 billion across January.

Money Market funds experienced their first month of net redemptions since April of 2019, demonstrating potential renewed bullishness among investors. The asset class saw outflows of US$24.7 billion after inflows of US$62.2 billion in December.