The U.S. mutual fund business has enjoyed both growth of assets under management and robust performance in the year since the presidential election, Thomson Reuters Lipper reported this week.
Many investors, the report said, still appear to expect the broad tax reform and infrastructure development promised by the Trump administration.
For the 12-month period ended Sept. 30, total net assets under management of U.S. mutual funds — including exchange-traded funds — increased by 16.1%, from $18.2 trillion to $21.1 trillion.
Among six broad-based asset types, equity funds experienced the biggest absolute increase, up 21.6% to $11.4 trillion. Bond funds followed, up 11% to $4.2 trillion.
Money market funds’ total net assets increased by 3.8% to $2.6 trillion, and the total net assets of mixed assets grew by 19.6% to $2.4 trillion.
Only alternatives and commodity funds experienced declines in total net assets, down 0.5% to $372 billion and 8.1% to $91.8 billion, respectively.
The report said performance was the chief contributor to asset growth.