Bringing you live news and features since 2013
Bringing you news, views and analysis since 2013

2213

Mutual fund investors “added to their holdings in January”

RELATED TOPICS​

Investors in US stock mutual funds added modestly to their portfolios during January, reversing seven straight months of net redemptions and providing a more positive start to 2009, acc

Investors in US stock mutual funds added modestly to their portfolios during January, reversing seven straight months of net redemptions and providing a more positive start to 2009, according to Strategic Insight.
 
Despite sharply falling stock prices in January, stock fund positive flows reached USD7bn, and were supported by seasonal deposits, according to estimates from Strategic Insight’s Simfund database.

Inflows were experienced in both US stock funds (USD5bn) as well as in international equity funds (USD2bn). These flows exclude the activity of ETFs.

During January, mutual fund investors net purchased USD21bn of taxable bond funds, with all key sectors showing gains, and more than USD3bn of tax-free bond funds.

Money market mutual funds benefited from more than USD64bn of net inflows, as MMF assets rose to another record nearing USD4trn.

‘January data suggests a slowing of defensive switching among stock fund investors, and implies that sizeable net redemptions are unlikely to recur,’ says Avi Nachmany, Strategic Insight’s director of research. ‘With more than two-thirds of stock fund assets held for retirement savings, the eventual recovery of stock prices will benefit most buy-and-hold investors.’

ETF bond funds garnered over USD5bn of net inflows in January, while ETF equity funds experienced modest net redemptions.

‘While overall ETF flows were modest in January, 40 such funds each gained over USD100 million of net flows in the month,’ says Loren Fox, a senior research analyst at Strategic Insight. ‘Our just-published 200-page study of ETFs, Growth, Innovation, Competition, suggests that rapid growth of ETFs should continue in 2009 and beyond.’

Latest News

EFAMA has commented on today’s vote by the European Parliament in favour of a new..
Morgan Stanley Investment Management (MSIM) has announced the launch of the MS INVF Systematic Liquid..
Confidence in the continuing strength of bitcoin and Ethereum is driving wider interest in altcoins..

Related Articles

Juan Nozal, Mapfre Asset Management
Juan Nozal, Fixed Income Portfolio Manager at MAPFRE Asset Management, talks about the outlook for fixed income assets over 2024, in what he predicts will be an outstanding year for this asset class...
Juan Nozal, Fixed Income Portfolio Manager at MAPFRE Asset Management, talks about the outlook for fixed income assets over 2024,..
n response to the increased attention to climate change risk, institutional investors, asset managers, and asset owners in the US are committed to implementing a variety of measures to address climate change and reach their net-zero goals, according to Cerulli Associates...
n response to the increased attention to climate change risk, institutional investors, asset managers, and asset owners in the US..
Lord Hollick, House of Lords
A House of Lords committee has raised “significant concerns” over the role of UK regulators, their ability to operate with genuine independence from government and how they are held to account...
A House of Lords committee has raised “significant concerns” over the role of UK regulators, their ability to operate with..
Rob Edwards, Morningstar
The complexities of assessing performance from responsible investment strategies have been laid bare after Morningstar’s ESG indices delivered a mixed bag in 2023...
The complexities of assessing performance from responsible investment strategies have been laid bare after Morningstar’s ESG indices delivered a mixed..
Subscribe to the Institutional Asset Manager newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by