Bond Funds Likely to Reverse April Outflows as Monthly Returns Attract Investors

Fund Market by Asset Type, April

Most of the net new money for April was attracted by money market funds, accounting for $5.4 billion, followed by mixed assets funds and alternatives funds, at $5.1 billion and $0.1 billion of net inflows, respectively. Bond funds, at negative $6.4 billion, were at the bottom of the table for April, bettered by equity funds and other funds, at $5.4 billion and $0.1 billion of net outflows, respectively.

All asset types posted positive returns for the month, with bond funds at 4.2%, followed by real estate funds and money market funds, at 4.1% and 3.7% returns, respectively, on average. The best performing funds for the month were bond funds at 4.2%, followed by real estate funds and money market funds, at 4.1% and 3.7% returns, respectively, on average. Commodity funds, at positive 1.7%, outperformed, followed by other funds and equity funds, at positive 2.1% and positive 2.5%, respectively.

Fund Market by Asset Type, Year to Date

For the year to date, most of the net new money was attracted by money market funds, accounting for $11.1 billion, followed by mixed assets funds and bond funds, at $3.6 billion and $1.1 billion of net inflows, respectively. Equity funds, at negative $17.8 billion, were at the bottom of the table for the year to date, bettered by other funds and real estate funds, at $0.1 billion and $0.0 billion of net outflows, respectively.

All asset types posted positive returns for the year to date, with commodity funds at 16.3%, followed by bond funds and real estate funds, at 7.9% and 7.7% returns, respectively, on average. The best performing funds for the year to date were commodity funds at 16.3%, followed by bond funds and real estate funds, at 7.9% and 7.7% returns, respectively, on average. Equity funds, at positive 2.3%, outperformed, followed by mixed assets funds and alternatives funds, at positive 4.6% and positive 5.1%, respectively.

Fund Market by Asset Type, Last Year

Most of the net new money for the one-year period was attracted by bond funds, accounting for $37.6 billion, followed by equity funds and commodity funds, at $5.6 billion and $0.4 billion of net inflows, respectively. Mixed Assets funds, at negative $4.8 billion, were at the bottom of the table for the one-year period, bettered by money market funds and other funds, at $2.0 billion and $0.4 billion of net outflows, respectively.

All asset types posted positive returns for the one-year period, with commodity funds at 22.9%, followed by bond funds and mixed assets funds, at 10.9% and 8.6% returns, respectively, on average. The best performing funds for the one-year period were commodity funds at 22.9%, followed by bond funds and mixed assets funds, at 10.9% and 8.6% returns, respectively, on average. Alternatives funds, at positive 3.7%, outperformed, followed by equity funds and real estate funds, at positive 6.4% and positive 6.7%, respectively.

Lipper Global Classifications, April

Looking at Lipper’s fund classifications for April, most of the net new money flows went into Money Market EUR (+$6.0 billion), followed by Mixed Asset EUR Bal – Global and Bond EMU Government (+$5.0 billion and +$0.8 billion). The largest net outflows took place for Equity US, at negative $2.2 billion, bettered by Equity Europe and Equity Sector Real Est Global, at negative $1.8 billion and negative $1.2 billion of net outflows, respectively.

The best performing funds for the month were Alternative Currency Strategies, at plus 11.7%, followed by Equity Brazil and Equity Sector Real Est Europe, at plus 10.5% and plus 10.4% returns, respectively, on average. Equity Vietnam, at minus 9.4%, was the worst performer, bettered by Commodity Industrial Metals and Equity Pakistan funds, at minus 9.0% and minus 8.6%, respectively.

Lipper Global Classifications, Year to Date

For the year to date, most of the net new money flows went into Money Market EUR (+$10.1 billion), followed by Mixed Asset EUR Bal – Global and Equity Taiwan (+$5.3 billion and +$2.3 billion). The largest net outflows took place for Equity Global, at negative $4.6 billion, bettered by Equity US and Equity Theme – Alternative Energy, at negative $4.3 billion and negative $3.4 billion of net outflows, respectively.

The best performing funds for the year to date were Equity Sector Gold&Prec Metals, at plus 31.5%, followed by Equity Emerging Mkts Europe and Equity Brazil, at plus 28.3% and plus 27.0% returns, respectively, on average. Mixed Asset TRY Flexible, at minus 19.0%, was the worst performer, bettered by Commodity Energy and Equity Turkey funds, at minus 15.1% and minus 15.0%, respectively.

Lipper Global Classifications, Last Year

For the one-year period, most of the net new money flows went into Equity Global (+$13.9 billion), followed by Equity Taiwan and Equity Switzerland (+$6.4 billion and +$5.3 billion). The largest net outflows took place for Equity Theme – Alternative Energy, at negative $12.1 billion, bettered by Equity Europe and Money Market EUR, at negative $6.7 billion and negative $6.3 billion of net outflows, respectively.

The best performing funds for the one-year period were Equity Pakistan, at plus 44.8%, followed by Equity Sector Gold&Prec Metals and Equity Sector , at plus 43.4% and plus 37.2% returns, respectively, on average. Equity Taiwan Sm & Mid Cap, at minus 17.6%, was the worst performer, bettered by Equity Turkey and Commodity Energy funds, at minus 16.5% and minus 15.4%, respectively.

Note

This report is narrowing its focus from broad ESG/RI funds–those which indicate some form of ESG/RI strategy in their fund documentation–to a smaller focus of sustainable funds, defined as all SFDR Article 9 funds plus all Lipper Responsible Investment Attribute funds reduced to those containing indicative sustainable keywords in the fund name. US and Canadian funds will align to Lipper’s Responsible Investment Attributes with no further screening.