Weekly flows show Equities (+$9bn) over Bonds (+$1bn) again - Chart 1. And though the Great Rotation thesis is fast becoming consensus, Chart 2 suggests the rotation is far from over…
…more good news is that long-only funds see $6.5bn inflows this week (largest in 12 months), a sign that investors are warming to idea of active funds (as opposed to just passive index strategies)
Meanwhile, 12 straight weeks of EM equity redemptions = longest outflow streak in 11 years
>>> Asset Class Flows
* Equities: Chunky $9.4bn inflows; note that $6.5bn via long-only funds = largest weekly inflows in a year!
* Bonds: Modest $1.0bn inflows (Table 1)
* Commodities: 10 straight weeks of redemptions
* MMF: $22bn redemptions (first outflows in 4 weeks)
>>> Equity Flows
* EM: 12 straight weeks of outflows ($1.3bn –longest outflow streak in 11 years – Table 3)
* Europe: 29 straight weeks of inflows ($4.1bn)
* Japan: 4 straight weeks of inflows
* US: $3.7bn inflows = largest in 7 weeks
>>> Fixed Income Flows
* 4 straight weeks of inflows to HY bond funds ($1.2bn) and IG bond funds ($0.6)
* 82 straight weeks of inflows to floating-rate debt (Table 2)
* 35 straight weeks of outflows from MBS
* 16 straight weeks of outflows from Munis
* 16 straight weeks of outflows from EM debt