One-year Because Trump’s win, U.S. funds enjoy strong growth

Assets managed by U.S.-based funds have risen substantially, led by equity capital, since Donald Trump won the U.S. presidential elections per year ago.

Though financial markets have been widely skeptical about the capacity of the Trump presidency to pass substantial political reforms because he won the U.S. elections, capital have appreciated inflows and have seen the value of the holdings grow as international financial markets enjoyed double returns.

Since the Trump presidency approached a yearlong anniversary on Wednesday, total net assets under management of U.S. mutual funds such as exchange-traded funds climbed by a sixth to $21.1-trillion within the one-year period ending Sept. 30, according to data from Thomson Reuters.

Equity funds were the leaders with assets under management for inventory funds seeing the largest increase over this period with total assets increasing by a fifth to $11.4-rillion as of end-September worldwide stock markets hit new peaks.

U.S. stocks hit a record high on Monday with stocks up more than 15 percent year-to-date while an index of high yield U.S. bonds is up with a similar quantum at that interval.

While performance was a key driver as rising markets pushed up valuations, inflows also have been strong, particularly to passively managed funds as busy managers faced a second year of fierce competition from their exchange-traded counterparts.

Of the $691-billion of net inflows which was pumped to U.S. mutual funds within the one-year period ending Sept. 30 2017, about $685-billion have become passively managed funds.

Of that amount, almost $500-billion have become passively managed equity funds, while actively-managed equity capital saw $235-billion of outflows during this interval.

In the fixed-income area, inflow tendencies were a little more evenly matched with actively managed funds viewing $145-billion of net inflows compared with $191-billion of inflows into bond exchange-traded funds in this period.

Courtesy: The Globe And Mail

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