Mutual funds had another rough month. Contrary to the success of ETFs during November, actively managed funds saw outflows of $34.9 billion combined. According to a montly update by research firm Morningstar, funds dedicated to US Equity had an especially rough month. This asset class witnessed outflows of $19.7 billion, bringing the total decline of assets for 2015 to a staggering $163.1 billion. Part of this went to passive instruments, but the $106.8 billion inflows there are not covering the full amount.
Where did the rest of the money go? Part of it may have went to International Equity. Despite a somewhat sluggish November with outflows of $4.2 billion, the category is up $33.4 billion for the year. A similar development is witnessed in passive instruments with inflows of $174.8 billion in 2015. The strong numbers may be the result of the stimulus measures announced by the European Central Bank earlier this year. As a result of diverging paths in monetary policy, with the US Federal Reserve looking for normalization and ECB for more stimulus, asset managers are switching their bets across the ocean in favor of Europe. Also Japan is witnessing more inflows.