FYI: • U.S. investors pushed equity funds to their strongest June gains since 1938 while hanging on every bit of news concerning the U.S./China trade negotiations and Federal Reserve Board meetings during the quarter. For Q2 2019, the average equity fund posted a 2.96% gain, with Lipper’s U.S. Diversified Equity Funds (USDE) macro-classification (+3.36%) outpacing the other three major equity groups for the second consecutive quarter. • Total net assets (TNA) in the conventional funds business (not including exchange-traded products [ETPs] and variable insurance products [VIPs]) rose 1.93%, increasing $372.6 billion from Q1 2019 to just a little more than $19.689 trillion for Q2 2
Despite a rally in equities and a dovish tone from Federal Reserve Board members in Q2, fund investors were cautious during the quarter. The money market funds macro-group witnessed the largest absolute increase in TNA under management, jumping $122.9 billion (+4.32%) for the quarter to $2.971 trillion on June 30, while the long-term municipal debt funds macro-group experienced the largest relative increase (+6.37%) in TNA, rising $25.5 billion for Q2 to $425.4 billion.• Investors shrugged off relatively strong returns for the quarter, focusing on geopolitical issues and trade wars. These uncertainties pushed the non-4x3 U.S. diversified equity funds macro-group to the largest absolute (-$225.8 billion) and relative (-17.34%) declines in TNA, falling to $1.077 trillion by June 30, 2019
Regards,
Ted
http://lipperalpha.refinitiv.com/wp-content/uploads/2019/07/Mutual-Funds-and-ETF-Snapshot-Q2-2019-1.pdf
