Active Funds Finally Attracting Investors Again?

Active manager holdings are helping funds beat the market.

According to Bank of America’s weekly Flow Show Report, during the third week of January investors committed a massive a $23.9 billion to equity funds. Following this contribution, the four-week flow recorded was the biggest ever at $58 billion. And in a reversal of fortunes for active managers, flows into active equity funds rose to a four year high. Active funds alone pulled in $12.2 billion. By comparison, inflows into equity funds across all classes were $278 billion for all of 2017. Last year, more than $150 billion left active funds.

It seems that after almost a decade of withdrawals, active funds are finally attracting investor attention again. It seems performance is helping. Further research from...