Fuse Blog

Taxable Bond Strategies Push Mutual Fund Flows into Positive Territory

  • In February 2024, mutual funds saw their first positive inflows since January 2023, totaling $16.0 billion. Also, mutual fund flows surpassed $1 billion for the first time since November 2021.
  • Taxable Bond strategies were responsible for the boost, collecting $36.6 billion and exceeding their overall net inflows throughout 2023. Active Taxable Bond funds accounted for 64% of investor demand, while the remaining 36% flowed to passive funds.
  • Flows will likely continue to gravitate toward actively managed Taxable Bond mutual fund managers that can tactically position themselves ahead of the Fed’s first rate cut, which, due to hotter-than-expected inflation, is now expected in June at the earliest.

Active Taxable Bond Flows Drive Mutual Fund Demand Higher ($M)

Blog 3.19.24

Source: Morningstar, FUSE Research