Strategic Insight’s monthly fund flow report for November
2016 shows active and passive strategies continued to experience divergent
trends in net investments.
Passive funds led demand with $67.7 billion of inflows
(including $49.4 billion to exchange-traded products), while actively managed
funds experienced aggregate net redemptions of $63.9 billion in November.
During the month, domestic equity funds saw the strongest
demand among long-term funds, attracting net inflows of $21.1 billion. This
segment has experienced net outflows of $39.5 billion in the year-to-date
period through November, however. International equity funds saw net
redemptions in November ($4.8 billion) and the year-to-date period ($19.2
Regarding taxable bond funds, Strategic Insight says they experienced
outflows of $1.8 billion in November, while tax-free bond funds saw outflows of
$10.7 billion. Strikingly, November represents the only month in 2016 that tax-free
bond funds experienced net redemptions, while taxable bond funds have only seen
outflows in January and November of 2016.
Money market funds experienced a significant increase in net
deposits to $54.8 billion in November from $6.0 billion in October. Taxable money
market funds, in particular, were responsible for most of this increase with
net inflows of $53.0 billion.
Strategic Insight concludes the biggest difference in
November from the rest of 2016 was that prime money market funds experienced
moderate inflows ($220 million). The segment had seen significant net
redemptions throughout 2016 because of pending regulation which ultimately came
into effect in October.
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