Not in the vanguard

13 February 2017 By Tom Buerkle Follow @tombuerkle

A fresh inflow of money to active U.S. equity mutual funds, the first in nearly a year, offers little solace to managers. Vanguard took in almost 90 times as much in January to cross the $4 trln mark. Passive giants’ scale and cost edge continue to separate them from the pack.

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U.S. actively managed equity mutual funds had net inflows of $550 million in the week ended Feb. 8, ending a 47-week string of net outflows, Thomson Reuters Lipper reported on Feb. 10. Non-domestic equity funds pulled in $582 million in new money in the week while domestic funds had net outflows of $27 million.

Vanguard had net inflows of $49 billion in January. Most of the amount, some $45 billion, went into indexed funds, including $15 billion into exchange-traded funds, according to the Valley Forge, Pennsylvania-based company, which is owned by its own funds. The latest flows pushed total assets under management at the world's second-largest investment manager to just over $4 trillion.

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