APs Continue To Embrace Equities, While Conventional Fund Investors Are Content To Sit On The Sidelines For November

Dec. 18, 2017 3:43 PM ETAGG, DWT, FXU, IEFA, IEUR, IVV, SPY, SVXY, TLT, XLF
Tom Roseen profile picture
Tom Roseen
1.48K Followers

Summary

  • 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 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.

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.

This article was written by

Tom Roseen profile picture
1.48K Followers
Tom Roseen is the Head of Research Services, joining from Janus in 1996. He is the editor and an author of Lipper's U.S. Research Studies, FundFlows Insight Reports and FundIndustry Insight Reports. He is involved in fund analysis and research, and contributes to the monthly and quarterly equity and fixed income FundMarket Insight reports, webcasts and podcasts, where he focuses on domestic and world fund performance and attribution. His areas of expertise include closed-end fund analysis, portfolio evaluation, equity and fixed income fund research, fund flows analysis, after-tax performance and Lipper Leaders. Tom has a BS in finance from Metropolitan State College of Denver and a Master's in International Management from the University of Denver.
Follow

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Recommended For You

Comments

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.