Despite a week of major carnage to US equities , inflows to all equities funds remain strong ($11.2bn) and still greater than inflows tobond funds($6.3 bn)
Watch performance of High-Yield for clues that the current sell-off could mutate into broader carnage for risk assets.After all, with the exception offloating-rate debt HY is the asset class with the biggest year-to-date inflows as % of AUM (3.7%)
Capitulation back into EM : largest weekly inflows to EM debt & equity funds in more than a year ($4.7bn combined The flow differential between DM and EM equity funds reached an extreme 98 th percentile in Mar’14. To gauge extent to which the reversal is complete, watch the relative positioning between EM/Japan and EM/Eurozone in next week’s April FMS
>>> Asset Class Flows
- EM : $11.2 inflows(Largest in 7 weeks)
- Bonds : $6.3bn Inflows ( 5 straight weeks)
- Cash $15bn outflows
- Commodities : $0.20 outflows
>>> Equity Flows
- EM : $2.9bil Inflows (Largest weekly inflows since Feb13)
- US: $6.3bn Inflows (Majority via ETF's)
- Europe : 41straight weeks of inflows
- Japan: 0.6bil Outflows