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July's inflows represented 0.5% of industry assets, according to the Barclay Fund Flow Indicator published by BarclayHedge, a division of Backstop Solutions.

The hedge fund industry turned in another profitable trading month as well, earning a $34.7 billion trading profit and bringing total industry assets to more than $3.11 trillion as the month ended.

Data from 7,000 funds (excluding CTAs) in the BarclayHedge database showed Balanced (Stocks & Bonds) funds leading the way in bringing in new assets in June with $13.8 billion in inflows.

"As the spring months progressed, there was a growing sense of investor optimism that the worst of the pandemic's economic damage was behind us," said Sol Waksman, president of BarclayHedge. "As unemployed figures declined and stock markets recovered, investors began coming back to hedge funds."

Over the 12-month period through June, hedge funds experienced $169.5 billion in redemptions. Coupled with June's inflows, a $34.7 billion trading profit during the month brought industry assets to more than $3.11 trillion as June ended, up from $3.04 trillion at the end of May but down from $3.15 trillion a year earlier.

Hedge funds posting 12-month inflows through June were led by Event Driven funds which brought in $21.0 billion over the period, 12.8% of assets. Sector Specific funds added $15.1 billion, 8.7% of assets, Convertible Arbitrage funds took in $3.2 billion, 15.7% of assets, and Emerging Markets - Latin America funds added $1.0 billion, 8.1% of assets.

Sectors with the largest 12-month redemptions included Fixed Income funds with $46.7 billion in outflows, 7.0% of assets, Equity Long/Short funds with $41.3 billion in redemptions, 20.1% of assets, and Equity Long Bias funds which shed $19.6 billion, 5.9% of assets.

The managed futures industry reversed course from May's $1.3 billion in inflows with $440.2 million in redemptions in June. A $1.4 billion trading loss brought industry assets to $283.1 billion as the month ended, down from $284.1 billion at the end of May.

For the 12 months through June, the managed futures industry experienced $23.6 billion in redemptions, 7.3% of industry assets. A $10.4 billion trading loss over the period contributed to the industry's $283.1 billion total asset figure at the end of June, down from $324.8 billion a year earlier.