>>> A Week of Redemption
Weekly outflows from stocks ($8.5bn - largest in 7 weeks), bonds ($1.0bn – 1st outflow in 12 weeks), precious metals ($0.2bn)
* Weekly Fixed Income Flows
- 51 straight weeks of inflows to IG bond funds ($5.2bn) (Table 2)
- $3.8bn outflows from HY bond funds (largest in 18 weeks)
- $1.1bn outflows from EM debt funds (largest since Mar’14)
- 22 straight weeks of outflows from bank loan funds ($1.0bn)
- 14 straight weeks of outflows from TIPS ($0.1bn)
* Weekly Equity Flows
- EM: $1.7bn outflows (4 straight weeks of outflows) (Table 3)
- Europe: $1.6bn outflows (first outflows in 3 weeks)
- US: $6.0bn outflows (all via mutual funds); Japan: small $0.1bn inflows
* Winners & Losers in the 2014 Flow Show
YTD fund flows: Equities ($165bn), Fixed Income ($152bn), Money-markets (-$26bn) & Precious metals (-$7bn)
* Winners & Losers in the 2014 Flow Show
YTD fund flows: Equities ($165bn), Fixed Income ($152bn), Money-markets (-$26bn) & Precious metals (-$7bn)
* The Biggest Losers (the deserted trades heading into 2015):
Emerging Markets (LatAm, EEMEA, local currency debt), TIPS, bank loans
>>> The Big 2014 Flow Trends:
* Into Quality, out of Junk: $168bn inflow to IG bond funds versus $23bn outflow from HY
* Into US, out of EM & Europe: $76bn inflows to US equity funds versus $15bn out of EM equity funds & $43bn outflow from Europe funds past 5 months
* Into Deflation, out of Inflation: inflows to government bonds (Chart 1), utilities, health care, out of TIPs, bank loans, energy-rich EEMEA/LatAm
* ETF’s over Mutual funds: $163bn inflows (8% AUM) to ETF’s vs just $2bn inflows
to mutual funds