Active US equity fund outflows increase

Active US equity funds have experienced over $50 billion in outflows in a two-month period.
By Paul Walsh
Active US equity funds saw $32.9 billion of net outflows in July, surpassing the $21.7 billion exiting in July and totalling $54.6 billion leaving these funds in the past two months.

A Morningstar report on US mutual fund and exchange traded funds (ETFs) for July also revealed that all active category groups except taxable bonds, municipal bonds and commodities experienced outflows in July.

By contrast all passive categories experienced inflows in the same period, with investments in US equity funds undergoing a significant increase standing at a net of $33.8 billion in July compared to $8.7 billion in June.

Taxable bonds represented the largest inflow, gathering a net of $34 billion in July.

Other results from the report revealed six months of positive fixed income flows that have been put down to investors’ preference for assets with lower risk profiles than stocks, as well as their desire to seek returns in the current environment.