Active US equity funds suffer largest monthly outflow since October 2008

Morningstar’s research has unveiled that actively managed US equity funds saw the largest outflows since October 2008, as investors pulled £21.7bn from these funds in June.

While Britain’s vote regarding its exit from the European Union dominated the news in June, it had little effect on flows: investors withdrew $56m from international equity funds while the MSCI Europe, Australasia, and Far East (EAFE) Index declined 3.4% in June.

Meanwhile, all passive category groups experienced inflows, totaling $29.2bn; except for alternatives, which had outflows of €1.3bn (see table below).

In terms of total flows (active and passive combined), taxable and municipal bond funds continued their streak of inflows that began in January. Flows into commodities spiked again in June, fueled by precious-metals funds, with the majority of flows into gold ETFs. SPDR Gold Shares led the way with an estimated net inflow of $3.5bn.

Of the top 10 US fund families, State Street and Vanguard were the only firms to see flows into active strategies in June, raking in $238m and $3.3bn, respectively. Vanguard and BlackRock/iShares led flows into passive strategies during the month, with $16.8bn and $9.9bn, respectively.


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