International Equity Tops Fund Flows in June

Net inflows to stock and bond mutual funds and exchange-traded products (ETPs) totaled $8.5 billion in June.

Long-term mutual funds saw net outflows of $5.4 billion in aggregate during the month, while ETPs experienced roughly $14 billion of net deposits, according to Strategic Insight, an Asset International company.

Investor demand in June was led by international equity offerings, which attracted nearly $25 billion of net inflows in total across funds and ETPs (including $8.7 billion to actively managed strategies). Longer-term, the $170 billion deposited to international equity funds and ETPs over the first half of 2015 represented the largest net inflows of any fund type by a wide margin, Strategic Insight said.

Within the U.S. equity space, health (including biotech) strategies once again led net inflows to actively managed funds during June, garnering $1.3 billion. Over the first half of 2015, such funds have attracted nearly $10 billion of net deposits (the largest of any active U.S. Equity objective)—spurred by the category’s 35% weighted-average total returns during the one-year period ended in June.

Bond funds saw $10.2 billion of net outflows in aggregate during June, with taxable bond offerings accounting for $8.6 billion of net redemptions (including roughly $10 billion from active strategies). Corporate high yield funds, in particular, experienced $7.7 billion of net outflows during the month.