David Cohne, fund analyst at Bloomberg Intelligence (BI), saw the massive outflows mutual funds have experienced in equities and wanted to know if there was any hope for inflows in mutual funds. This led him to look at actively managed fixed-income funds, where he discovered a ‘small pocket of hope.’
‘When I look at the mutual fund industry as a whole, active equities continue to see outflows and a lot of managers are having trouble outperforming the benchmarks aside from emerging markets or small cap managers, so I wanted to see where there is actually hope,’ Cohne told Citywire.
Cohne found that fixed-income mutual fund launches are still seeing inflows compared to their struggling equity counterparts.