* Weekly flows: redemptions from equities ($2.7bn), precious metals ($0.3bn) and money-markets ($8.4bn) contrast with strong bond fund inflows ($6.9bn)…IG and Govt bonds still king
* Europe gaining momentum: flows to EU equity funds are improving from low levels and turning up (Chart 1) after big $24bn outflows in Sep-Nov’14…tailwind for European equities
* EM & HY still out-of-favor: outflows from EM equity, EM debt and HY bond funds most dire since May/Jun’13 taper tantrum (Chart 2)…but HY showing signs of life with first inflows in 7 weeks
>>> Asset Class Flows
* Equities: $2.7bn outflows ($1.8bn outflows from mutual funds vs $0.8bn ETF outflows)
* Bonds: $6.9bn inflows (largest in 9 weeks) (Table 1)
* Precious metals: $0.3bn outflows (7 straight weeks)
* Money-markets: $8.4bn outflows
>>> Equity Flows
* EM: 9 straight weeks of redemptions ($2.8bn) (Table 2); EM flow trading rule shows that 4-week outflows = 1.0% of AUM. Flows have been bearish but not enough to trigger contrarian “buy’ signal for EM equities (Chart 4)
* US: $1.7bn outflows (outflows from both ETF’s and mutual funds)
* Japan: chunky $2.0bn inflows
* Europe: modest $0.2bn inflows; momentum improving
>>> Fixed Income Flows
* 56 straight weeks of inflows to IG bond funds ($5.1bn)
* HY bond funds eke out first inflows in 7 weeks (albeit a small $0.2bn)
* 6 straight weeks of outflows from EM debt funds ($1.1bn)
* 27 straight weeks of outflows from bank loan funds ($0.7bn) (Chart 3)
* 17 straight weeks of inflows to muni funds ($0.4bn)
* 13 straight weeks of inflows to MBS funds ($0.7bn)
* $2.2bn inflows to govt/tsy funds (largest in 12 weeks)