While Muni Fixed Income saw impressive inflows for both Mutual Funds and SMAs, laddered muni SMA strategies have been seeing significant growth. These strategies have been attractive to advisors as they provide their clients fixed income solutions with reduced risk while allowing more flexibility and liquidity. While Muni Ladder growth has been getting a great deal of attention, it is very top heavy with the top three asset managers accounting for more than 80% of assets.
Active ETFs played a significant role in overall fixed income fund flows. The vast majority of active ETF inflows were to Ultrashort Bond (83%), and Short Term Bond (11%) funds. Additionally, Ultrashort ETFs (active) saw just as many net sales on fee based programs as ultrashort mutual funds over the last 12 months.
As asset managers look to gain a better understanding of how advisors are leveraging a combination of active and passive strategies, it’s critical to arm sales, marketing and product teams with impactful data-driven insights. One central theme in the industry has been the increased importance of using data across these respective groups to ultimately help drive sales efforts.
To that end, BNY Mellon will continue to provide clients with actionable, relevant analysis through its Intermediary Analytics solutions. BNY Mellon Data and Analytics Solutions integrates the resources of Intermediary Analytics, Eagle products, and other BNY Mellon technology and data assets to build client-centric technology and content solutions. By providing distribution trend analysis, the Intermediary Analytics solutions will help clients understand the drivers behind advisors’ use of active and passive products, which can be an important first step when engaging with financial advisors.
1 BNY Mellon Intermediary Analytics data, as of September 30, 2019.
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