Morningstar: Flows chase overseas performance

U.S. equity outflows rose to $14.3 billion in July, up substantially from $8.0 billion in June. Consistent outflows from actively managed funds drove the increase, outranking steady inflows on the passive side. Unsurprisingly, this money seems to be making its way to international equity funds, where $21.2 billion was injected during the month of July. This echoes a 7.7% return on the MSCI EAFE, compared to only 3.4% returned on the S&P 500.

Current investment patterns suggest that the United States is in the late phases of a bull market, while Europe and Japan are still actively stimulating their markets. The global economic disparity is reflected in flow patterns.

For more information on U.S. asset flows during July, please click here.