Informa Intelligence
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FUND FLOWS: Actively Managed U.S. Equity Funds Continue to Bleed

Investors in actively managed U.S. equity funds pulled money out for the 51st time in the past 52 weeks.

The week ending June 21 saw four of the five major EPFR Developed Markets Equity Fund groups post inflows. But these were offset by outflows from U.S. Equity Funds, which followed up the previous week’s $17 billion inflow—a 26-week high—with a $7 billion outflow. 

All of the major actively managed U.S. Equity Fund groups by capitalization and style recorded outflows, as did all but two of the ETF groups, as retail investors redeemed money for the 51st time in the past 52 weeks. Large Cap Blend Funds experienced the biggest outflows in cash terms, and Mid Cap Blend Funds inflows as a percentage of AUM terms. U.S. Dividend Equity Funds extended their longest outflow streak since the start of 2016, but funds with Socially Responsible Investment (SRI) mandates recorded inflows for the first time since early April.

 

Flows into Europe SRI Equity Funds, meanwhile, have been largely positive since the beginning of last year. They have been given an additional boost this year by the broad enthusiasm for European equity, reflected in the 13-week inflow streak Europe Equity Funds have compiled since late March. At the country level, Switzerland Equity Funds, which snapped a 12-week losing run the previous week, saw redemptions hit a level last seen in the middle of the second quarter of 2008, as investors took profits. France Equity Funds posted consecutive weekly inflows for the first time since early February after voters gave reformist President Emmanuel Macron’s En Marche! party a working majority.

 

Japan Equity Funds attracted fresh money for the second straight week ahead of the first upgrade year-to-date in the government’s assessment of the economy. Capital spending by Japanese firms is rising as stronger domestic demand whittles down inventories and inflation, helped by higher energy prices, moved higher. Foreign currency flows to Japan Equity Funds, which stalled in mid-March, have picked up modestly over the past two weeks.

Global Equity Funds, the largest of the diversified Developed Markets Equity Fund groups, posted inflows for the 27th consecutive week.

Cameron Brandt is director of research for EPFR Global, an Informa Financial Intelligence company.

TAGS: Mutual Funds
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