In this report we take an in-depth look at the evolution of the industry, particularly the U.S. mutual fund industry, to help understand how some fund flow trends are more of an indication of evolving investor preferences instead of an indication of retail investor sentiment toward a particular asset class.
Net inflows into U.S. focus equity funds were somewhat ahead of last year’s pace by the end of January. Estimated net inflows of $18 billion compares to last January’s $16.1 billion.
Net inflows into equity funds lagged somewhat behind last January. We estimate U.S. focus equity funds experienced still strong net inflows of $17 billion, but foreign focus net inflows may have been less than $1 billion (net redemptions in the first few weeks).
Regardless of conflicting trends being reported in December by AMG and Trim Tabs, our studies conclude that December net inflows into U.S. focus funds (not foreign funds) exceeded December 1996.
Over and over we hear and read that today’s mutual fund investors are different. They are truly long term investors saving for retirement.
In December 1989, a survey of program trading opinions was taken among the members of the National Organization of Investment Professionals.