This was despite net redemptions towards the end of the second quarter, and if the amount were annualised, it would represent the highest level of inflows in any full calendar year the business intelligence provider noted.
Annual global net flows globally "reached or slightly exceeded $1trn in 2009, 2010 and 2012, respectively," an SI spokesman said. "Prior to 2009, the highest annual net flows [in] to mutual funds were around $900bn."
Outflows from long-term funds in June exceeded $120bn worldwide, but this represented less than 0.5% of total assets under management, SI said, citing its own data.
The majority of cash so far this year has gone into funds outside the US, which have collected $360bn on a net basis. Nearly three-quarters of this amount was absorbed by funds in Europe, including cross-border UCITS funds that are sold in markets worldwide.
Bond fund net redemptions in European and cross-border international funds were found to have reached 1.7% of total assets during June, similar to the levels experienced in the US.
Equity funds, however, registered net redemptions of just 0.5% of assets. With stock markets recovering in July, cash flows should show an improvement then, SI noted, adding that "historically, stock or bond fund redemptions driven by sharp price corrections have usually been limited in magnitude, short in duration, and non-recurring".
“The recent volatility will encourage investors and advisers to revisit their investment strategies, assess bond concentration risks, and consider reallocation opportunities – especially into selected equity programs and other diversification options," said Jag Alexeyev, head of global research at SI.
"Absolute return and alternative strategies should also benefit in the near term.”
Themes of recent months ‘to continue’
SI sees fund demand in Europe and Asia continuing to revolve around the same major themes as have been typical of the last few months, but with some shift in emphasis.
It predicts that income vehicles, multi-asset funds, flexible and unconstrained allocations, non-traditional strategies, risk control and managed volatility, target maturity, and outcome-oriented products, which have recently contributed to gains for asset managers globally, will remain in demand, but sales of equity funds will also likely expand over time.
As all of this may suggest, Strategic Insight regards the overall foundation of support for fund investments this year as having been " exceptionally strong". Cash flows for some leading funds in the first quarter, in fact, ran at more than double the monthly pace seen last year, the SI researchers found.
Sales continued to grow in April and May for some, and even though June was a difficult month, flows in the second quarter ended up higher than the previous period for several flagship products.
Among the other findings were that nearly 270 funds around the world captured at least $1 bn each, and in some cases as much as $13bn, during the first half of 2013.
Strategic Insight is based in New York and maintains US offices as well in Boston and Stamford Connecticut, and internationally in Hong Kong, London, Melbourne and Toronto.
