December 18, 2017

APs Continue to Embrace Equities, While Conventional Fund Investors Are Content to Sit on the Sidelines for November

by Tom Roseen

Conventional mutual fund investors continued their search for yield and safe-haven vehicles in November, padding the coffers of fixed income funds and money market funds, while authorized participants (APs—those investors that actually create and redeem ETF shares) remained fully engaged in the markets. Mutual fund investors continued to turn their backs on stock & mixed-equity funds, redeeming some $21.2 billion for the month, while for the eighteenth consecutive month APs were net purchasers of stock & mixed-equity ETFs, injecting $28.5 billion. On the fixed income side of the equation the focus of fund investors and APs stayed in line, with conventional bond funds attracting $16.3 billion net for November and bond ETFs drawing in $6.7 billion. In this segment I highlight the November fund-flow trends for both types of investment vehicles.

Highlights:

  • For the fifth straight month mutual fund investors were net purchasers of fund assets, injecting a net $55.9 billion into the conventional funds business. Fixed income funds (+$16.3 billion) and money market funds (+$60.8 billion) witnessed net inflows for November, while investors once again were net redeemers of stock & mixed-asset funds (-$21.2 billion).
  • For the second month in a row Thomson Reuters Lipper’s World Equity Funds macro-classification witnessed net inflows, taking in $1.9 billion for November.
  • For the twenty-second consecutive month authorized participants (APs) were net purchasers of ETFs, injecting $35.3 billion for November. APs injected a net $28.5 billion into stock & mixed-asset ETFs and were net purchasers of bond ETFs, injecting a net $6.7 billion.
  • For the second straight month USDE ETFs (+$12.9 billion for November) attracted the largest net draw of the five broad-based equity ETF macro-classifications.

Click here to download the November 2017 FundFlows Insight Report: APs Continue to Embrace Equities, While Conventional Fund Investors Are Content to Sit on the Sidelines for November.

Thomson Reuters Lipper delivers data on more than 265,000 collective investments in 61 countries. Find out more.

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