Weekly flows: bond fund inflows of $3.8bn, money-market fund inflows of $15.6bn, equity fund outflows of $7.4bn
Japanese momentum: Japan equity funds record largest two-week inflow in eight months; by contrast Europe continues to be the “vacant” trade (33 straight weeks of redemptions) and no interest since the Feb’16 market lows
- Equities: $7.4bn outflows (largest in 12 weeks) ($4.8bn mutual fund outflows and $2.5bn ETF outflows)
- Bonds: $3.8bn inflows (inflows in 11 of past 12 weeks)
- Commodities: $0.5bn inflows
>>> Equity Flows
- Japan: strong $2.4bn inflows (largest 2w inflows since Jan’16)
- EM: first outflows in 12 weeks (albeit small $0.1bn)
- Europe: $1.8bn outflows (record 33 straight weeks of outflows)
- US: $7.7bn outflows (largest in 12 weeks)
- By sector: first utilities inflows in 11 weeks ($0.3bn); first telcos inflows in nine weeks ($45mn); largest tech inflows since Nov’15 ($0.9bn); big $3.1bn outflows from financials (caveat: via XLF ETF…owing to GICS reclassification of REITs as standalone sector)
>>> Fixed Income Flows
- Two straight weeks of outflows from HY bond funds ($1.2bn)
- 11 straight weeks of outflows from Govt/Tsy funds ($0.3bn)
- 12 straight weeks of inflows to EM debt funds ($1.5bn)
- $2.8bn inflows to IG bond funds (inflows in 28 of past 29 weeks)
- 53 straight weeks of inflows to Munis ($0.4bn)
- 15 straight weeks of TIPS outflows ($0.3bn)