What You Need to Know
- Active U.S. equity funds suffered the biggest outflows, hurting their asset managers.
- Vanguard continued to reign supreme in fund assets and positive asset flows.
- Active fund managers T. Rowe Price and Franklin Templeton suffered big net outflows.
U.S. equity funds in July saw their first monthly outflows since January, bleeding a net $7.2 billion, according to Morningstar’s latest monthly fund flow report.
Actively managed funds, which had been attracting new assets for much of the year, accounted for all of the outflows in U.S. equity funds, losing $19.3 billion, while passive U.S. equity funds collected $12.1 billion in new assets. The fund flows data cover mutual funds and ETFs in multiple asset categories.
Small-cap value led the equity fund outflows, at $3.6 billion, followed by mid-cap (-$3.5 billion and financial funds (-$3.1 billion) but even large-cap and small-gap growth funds experienced outflows of around $2 billion each.
Fund managers such as T. Rowe Price and Franklin Templeton, which focus on actively managed funds, suffered large outflows overall, along with Invesco and State Street Global Advisors, which experienced big outflows in their passive funds, largely due to outflows in their U.S. equity funds.