An end-year week of modest flows: stocks see $1bn outflows, $3.4bn inflows to bonds, tiny $0.1bn gold outflows, and moderate $16bn money market inflows. 2016 was the largest year of equity redemptions since 2008 (Chart 1); by contrast, bond inflows continued for an eighth consecutive year.
- Equities: $1bn outflows ($7.8bn mutual fund outflows vs $6.8bn ETF inflows)
- Bonds: $3.4bn inflows (breaks 8-week streak of outflows)
- Commodities: small $0.5bn outflows (7 straight weeks)
>>> Equity Flows
- Japan: big $2.4bn inflows (largest in 7 weeks)
- Europe: $40mm outflows
- EM: $2.5bn outflow (2 straight weeks)
- US: $1.6bn outflows, largest decline in 8 weeks
- By sector: 8 straight weeks of real estate outflows ($1bn); 14 straight weeks of inflows to financials ($0.7bn); 7 straight weeks of inflows to infrastructure ($17mm). Flow winners for 2016 are materials & financials; losers are healthcare & consumer goods.
>>> Fixed Income Flows
- $2bn inflows to HY bond funds (5 straight weeks)
- 8 straight weeks of outflows from EM debt funds ($0.2bn)
- $1.4bn inflows to bank loans (7 straight weeks)
- Tiny $76mn outflows from Govt/Tsy funds
- First inflows to IG bond funds in 8 weeks ($2.2bn)
- 9 straight weeks of outflows from muni bond funds ($1.5bn)