Data Shows Funds Still Flowing to Liquid Alternatives

Mar 25 2015 | 11:51pm ET

Data from Morningstar shows fund inflows into liquid alternatives totaled a net $1.5 billion in February, split equally between active and passive strategies. 

Within the total, $767 million to active funds and $768 million to passive funds, according to Morningstar’s Direct Asset Flows Update. Published monthly, the report tracks mutual fund and ETF asset flows across a wide variety of fund categories. 

For the one-year period, inflows to alternatives totaled net $13.5 billion, but favored actively managed funds; $9.5 billion went to active funds and $4.1 billion to passive ones. As of the end of February, total assets in the liquid alternative space totaled $204 billion.

During the month, multi-alternative and managed futures funds commanded the most net new funds, while non-traditional bond, market neutral and long/short equity funds were shunned. Volatility, currency and commodity funds also did well.

Meanwhile, on a one-year basis, non-traditional bond funds are still one of the most favored categories, followed by multi-alternative. Non-traditional also remains the largest category of alternative funds, with $154 billion in assets.

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