PHOENIX, June 13, 2019 /PRNewswire/ -- According to the
2019 Pershing Asset Flows Barometer, released today by BNY
Mellon's Pershing ("Pershing"), net inflows into mutual funds and
exchange-traded funds (ETFs) followed similar trend lines over the
trailing 12 months ending March 31,
2019, with mutual funds experiencing net inflows of
$4 billion compared to $26.6 billion in net inflows into ETFs.
The only exception to the norm was the fourth quarter of 2018,
when mutual funds suffered outflows even as ETFs experienced
inflows.
"The downward market pressure in the fourth quarter contributed
to mutual fund outflows we experienced on our platform," said
Rich Calvario, director of
investment solutions at Pershing. "While fleeing from active
management in a volatile market may be counterintuitive, it is
likely that financial professionals were deploying tax loss
harvesting strategies to offset a portion of their losses before
year-end."
After experiencing outflows of $8.3
billion in the fourth quarter, mutual funds made a dramatic
recovery in the first quarter, recording $4.8 billion in net inflows. Meanwhile, inflows
into ETFs spiked in the fourth quarter, reaching $9.1 billion, but normalized in the first quarter
of 2019, finishing the quarter with $6.4
billion in net inflows.
Financial professionals move funds into large-blend equities
and ultrashort bonds in an uncertain market: In the fourth
quarter, net inflows into large-blend and foreign large-blend
equities reached $3.8 billion, with
ETFs recording inflows of $4.6
billion, more than offsetting the approximately $800 million in outflows from mutual funds in
these categories.
In contrast, both product types experienced outflows from
high-yield bonds and inflows into ultrashort bonds: Mutual funds
and ETFs experienced net outflows of $616
million and $391 million,
respectively, in the high-yield bond category, and net inflows of
$1.1 billion and $1.4 billion, respectively, in the ultrashort
bond category.
The move to institutional shares accelerates:
Institutional shares accounted for approximately 330 percent of the
total mutual fund net flows for the trailing 12 months ending
March 31, 2019. This is in contrast
to prior period when flows into institutional shares accounted for
108 percent of total mutual fund net flows. Institutional shares
usually have lower expense ratios than retail share classes and
typically don't include sales charges.
Further, assets on Pershing's no-transaction-fee platform,
FundVest®, increased in the first quarter of 2019 by
almost 13.4 percent over the prior quarter, driven by institutional
shares.
Meanwhile, in the 12 months ending March
31, 2019, net outflows from load and retail no-load shares
exceeded $9 billion.
Pershing responds to financial professionals' needs, adds new
managers to the FundVest® ETF platform:
In the first quarter of 2019, assets on Pershing's
no-transaction-fee ETF platform, FundVest ETF, reached $4.3 billion, more than doubling since
March 31, 2018.
In response to the increased demand by financial professionals,
Pershing today announced that it has expanded its FundVest ETF
platform. Seven new fund families, which include American Century,
DWS Group, Janus Henderson,
KraneShares, ProShares, USCF Investments, and Virtus, have been
added, along with 65 additional funds from existing providers First
Trust, Exchange Traded Concepts, Pimco and WisdomTree.
"Our no-transaction-fee ETF platform has experienced consistent
growth since its launch two years ago," said Justin Fay, director of product management for
alternative investments and ETFs at Pershing. "We continue to bring
our clients a broad selection of products and solutions at the most
competitive levels. The expansion of providers on the FundVest ETF
platform speaks to our commitment to meeting the evolving needs of
our clients."
About Pershing Asset Flows Barometer
Pershing Asset
Flows Barometer takes a holistic look at how financial
professionals have guided their clients' investments over the past
year and identifies relevant trends. The data is compiled from
approximately 1,300 Pershing clients, over 30 million individual
positions, with $680 billion in ETFs
and mutual fund assets under custody.
About BNY Mellon's Pershing
BNY Mellon's Pershing and
its affiliates provide advisors, broker-dealers, family offices,
hedge fund and '40 Act fund managers, registered investment advisor
firms and wealth managers with a broad suite of global financial
business solutions. Many of the world's most sophisticated and
successful financial services firms rely on Pershing for clearing
and custody, investment and retirement solutions, technology,
enterprise data management, trading services, prime brokerage and
business consulting. Pershing helps clients improve profitability
and drive growth, create capacity and efficiency, attract and
retain talent, and manage risk and regulation. With a network of
offices worldwide, Pershing provides business-to-business solutions
to clients representing approximately 7 million investor accounts
globally. Pershing LLC (member FINRA, NYSE, SIPC) is a BNY Mellon
company. Additional information is available on pershing.com,
or follow us on Twitter @Pershing.
About BNY Mellon
BNY Mellon is a global investments company dedicated to helping its
clients manage and service their financial assets throughout the
investment lifecycle. Whether providing financial services for
institutions, corporations or individual investors, BNY Mellon
delivers informed investment management and investment services in
35 countries. As of March 31, 2018, BNY Mellon had
$33.5 trillion in assets under
custody and/or administration, and $1.9
trillion in assets under management. BNY Mellon can act as a
single point of contact for clients looking to create, trade, hold,
manage, service, distribute or restructure investments. BNY Mellon
is the corporate brand of The Bank of New York Mellon Corporation
(NYSE: BK). Additional information is available on
www.bnymellon.com. Follow us on Twitter @BNYMellon or visit
our newsroom at www.bnymellon.com/newsroom for the latest
company news.
Sanuber Grohe
+1 201 413 2247
sanuberbilguvar.grohe@pershing.com
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SOURCE BNY Mellon