>>> Asset Class Flows
- Equities: $1.9bn inflows (first inflows in 5 weeks) (note divergence between $8.7bn
- ETF inflows and $6.8bn mutual fund outflows)
- Bonds: tiny $16mn outflows (first outflows in 19 weeks)
- Precious metals: $0.1bn outflows
- MMF: $6.4bn outflows
>>> Equity Flows
- Japan: big $4.3bn inflows (largest since Oct’14 and 12 straight weeks of inflows)
- Europe: 2nd straight week of outflows ($1.2bn)
- EM: $2.6bn outflows (outflows in 10 out of past 11 weeks)
- US: modest $0.6bn inflows (ends 8-week outflow streak)
>>> Fixed Income Flows
- $1.9bn outflows from govt/tsy funds (biggest outflows in 10 weeks)
- 73 straight weeks of inflows to IG bond funds ($2.1bn)
- Small $0.2bn outflows from HY bond funds (3 straight weeks)
- First MBS outflows in 30 weeks (albeit small $48mn)
- 9 straight weeks of inflows to TIPS funds ($0.2bn)
- 8 straight weeks of inflows to EM debt funds ($0.1bn)
--> Talking Points
- For the first time in 2015 equity funds see inflows ($1.9bn) and bond funds see outflows (albeit teeny tiny $16mn outflows)
- Largest weekly inflows ($4.3bn) to Japanese equity funds in 29 weeks (Chart 1) but…
- …European equity funds fall out of favor, recording 2nd straight week of outflows ($1.2bn) (Chart 2)
- US equity funds end 8 straight weeks of redemptions with modest $0.6bn inflows
- Pain in fixed income concentrated in government bonds ($1.9bn outflows – biggest in 10 weeks)
- Recent bond trends: consecutive inflows