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Investing May 19, 2015
Investors Turn Away from U.S. Equity in April
U.S. equity outflows were seen in both active mutual funds and index ETFs.
Reported by PLANSPONSOR staff
Net new flows to stock and bond funds totaled $28 billion in April, according to Strategic Insight, an Asset International company.
Net investment to equity funds totaled $14.4 billion during the month, driven by a $43.4 billion inflow to international equity. U.S. equity funds shed $29.1 billion during the month with outflows originating from both active mutual funds and index ETFs alike.
International equity has been a top draw for investors the past two months, according to Strategic Insight data.
Taxable bond funds attracted $12.7 billion during April on $4.3 billion of inflows to global bond products. Money market fund net redemptions totaled $77.8 billion for the month.
Average one-month April fund returns for international equity strategies were strong at 3.6%, Strategic Insight reports. U.S. equity and taxable bond fund average returns were modest in April at 0.4% and 0.2%, respectively. Tax-free bond fund returns were lower on average, declining by 0.5%.
More information about Strategic Insight is at www.sionline.com.