Mutual fund Inflows increase significantly in 2018
June 7, 2018

Net inflows to mutual funds on the BNY Mellon Pershing platform reached US$8 billion in the first quarter of 2018, according to the Pershing Asset Flows Barometer, launched today. This figure is a 68 percent increase compared to the same period in 2017, pointing to a renewed interest among financial professionals in mutual funds, Pershing suggests. 

Pershing Asset Flows Barometer takes a holistic look at how advisors have steered their clients' investments over the past year, and identifies relevant trends. The data is compiled from 1,400 Pershing clients, 28.7 million individual positions, $650 billion exchange-traded-funds (ETFs) and mutual fund assets under custody. 

As financial professionals turned toward more active investment strategies in the first quarter of 2018, ETFs experienced a slight slowdown.

Inflows into ETFs on the Pershing platform were at $6.2 billion in the first quarter of 2018, a decrease of about 14 percent compared to the prior year when ETF inflows were at $7.2 billion.  

"While ETFs enjoyed banner growth over the past few years, mutual fund allocations have made a comeback since the beginning of 2018, largely due to increased volatility in the markets," said Justin Fay, Director of financial solutions, responsible for alternative investments and ETFs at BNY Mellon's Pershing. "As advisors look to diversify their investment strategies to actively manage against emerging risks in the market, we are starting to see mutual fund inflows close the gap with ETFs."

Over the past 12 months, ending March 31, 2018, ETFs on the Pershing platform experienced a net inflow of $29.5 billion, an increase of 25 percent from the same period prior year. Meanwhile, mutual funds had a net inflow of $22.7 billion during the same period, which is four times higher than the prior 12 months.  

Almost all of the $8 billion inflows into mutual funds in the first quarter of 2018 went into institutional shares, which usually have the lowest expense ratio of all share classes and typically don't require sales charges.

"The trend toward lower cost share classes continues despite the uncertainty in the regulatory environment," said Rich Calvario, Director of investment solutions at BNY Mellon's Pershing. "This is no surprise given that financial professionals have been working for some time to reduce conflicts of interest related to their product choices. As such, we have seen inflows to the institutional shares come at the expense of other, commission-based share types." 





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Net inflows to mutual funds on the BNY Mellon Pershing platform reached US$8 billion in the first quarter of 2018, according to the Pershing Asset Flows Barometer, launched today. This figure is a 68 percent increase compared to the same period in 2017, pointing to a renewed interest among financial professionals in mutual funds, Pershing suggests. 

Pershing Asset Flows Barometer takes a holistic look at how advisors have steered their clients' investments over the past year, and identifies relevant trends. The data is compiled from 1,400 Pershing clients, 28.7 million individual positions, $650 billion exchange-traded-funds (ETFs) and mutual fund assets under custody. 

As financial professionals turned toward more active investment strategies in the first quarter of 2018, ETFs experienced a slight slowdown.

Inflows into ETFs on the Pershing platform were at $6.2 billion in the first quarter of 2018, a decrease of about 14 percent compared to the prior year when ETF inflows were at $7.2 billion.  

"While ETFs enjoyed banner growth over the past few years, mutual fund allocations have made a comeback since the beginning of 2018, largely due to increased volatility in the markets," said Justin Fay, Director of financial solutions, responsible for alternative investments and ETFs at BNY Mellon's Pershing. "As advisors look to diversify their investment strategies to actively manage against emerging risks in the market, we are starting to see mutual fund inflows close the gap with ETFs."

Over the past 12 months, ending March 31, 2018, ETFs on the Pershing platform experienced a net inflow of $29.5 billion, an increase of 25 percent from the same period prior year. Meanwhile, mutual funds had a net inflow of $22.7 billion during the same period, which is four times higher than the prior 12 months.  

Almost all of the $8 billion inflows into mutual funds in the first quarter of 2018 went into institutional shares, which usually have the lowest expense ratio of all share classes and typically don't require sales charges.

"The trend toward lower cost share classes continues despite the uncertainty in the regulatory environment," said Rich Calvario, Director of investment solutions at BNY Mellon's Pershing. "This is no surprise given that financial professionals have been working for some time to reduce conflicts of interest related to their product choices. As such, we have seen inflows to the institutional shares come at the expense of other, commission-based share types." 



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