U.S. active fundamental equities attracted large inflows in the last twelve months, but overall net flows were negative as investors divested from traditional strategies. Within the defined contribution and not-for-profit channels, domestic and global/international destinations attracted inflows in excess of $70 billion. But redemptions from more traditional, plain-vanilla strategies resulted in total net outflows of more than $8 billion. Strategies that diversify across geographic regions and with an ex-U.S. focus captured solid inflows and net flows, especially in products with a growth focus. As Callan has advised its clients: “The case for active management varies greatly by market capitalization. Passive is typically appropriate for large-cap U.S equity. Active management is compelling for small/mid-cap, global ex-U.S. and non-U.S. small cap."