One year ago President Donald Trump won the U.S. presidential election, and since then assets that have been managed by U.S. based funds have increased significantly, led by equity funds. Though financial markets have been widely wary about the ability of the Trump presidency to pass important political reforms since he won the U.S. elections, funds have enjoyed inflows and have seen the value of their assets gain as global financial markets notched in double-digit returns.
This week, the total net assets under management by U.S. mutual funds hiked to $21.1 trillion over a one-year time frame ending September 30th. Equity funds were in the lead with assets under management for stock funds reporting the largest advance over that period with total assets climbing by a fifth to $11.4 trillion as of September, global stock markets reached new highs.
On Monday (11/6) U.S. stocks reached a record high with stocks gaining more than 15% YTD, and a index of high yield U.S. bonds are seeing similar increases in that time period.
The key drivers for this boost have been the performance of the market, increasing markets driving up valuations, and inflows have also been a key component. Of the $691 billion of net inflows that circulated into U.S. mutual funds over the one-year period ending Sept. 30 2017, nearly $685 billion have been placed into passively managed funds. Of that amount, almost $500 billion have been put into passively managed funds, and actively managed equity funds reported $235 billion of expenditures during that period.
When it comes to fixed-income space, inflows trends were a little more even surfaced with actively managed funds recording $145B or net inflows in comparison to $191B of inflows going into bond-exchange traded funds during that same time period.
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