>>> Asset Class Flows
* Equities: $8.2bn inflows (note divergence between $9bn ETF inflows and $0.8bn mutual fund outflows)
* Bonds: $11.2bn inflows (6 straight weeks) (Table 1)
* Precious metals: $0.3bn inflows (4 straight weeks)
>>> Equity Flows
* Europe: $3.6bn inflows (5 straight weeks) (Chart 2)
* EM: $1.6bn inflows (largest since Sep’14) (Table 2)
* US: $3.2bn ETF inflows offset by $3.1bn mutual fund outflows
* Japan: $1.6bn inflows
>>> Fixed Income Flows
* 60 straight weeks of inflows to IG bond funds ($5.9bn)
* Largest weekly inflows ($4.2bn) to HY bond funds since Jul’13 (Chart 3)
* 2 straight weeks of inflows to EM debt funds ($0.2bn)
* 31 straight weeks of outflows from bank loan funds (albeit small $41mn)
* 21 straight weeks of inflows to muni funds (albeit tiny $28mn)
* 17 straight weeks of inflows to MBS funds ($0.6bn)
* TIPS record largest weekly inflows since May’12 ($0.5bn)
--> Weekly flows: bond fund inflows ($11bn) outpace equity fund inflows ($8bn) once again…no surprise given that a chunky $4.2 trillion of government debt are now yielding 0% or less
But overall flow trend is reflationary… following 12 central bank rate cuts YTD, bringing total rate cuts since the Bear Stearns crisis to 610
Renewed appetite for HY bonds: largest weekly inflows ($4.2bn – Chart 1) since Jul’13…
…though IG bonds still king: staggering 60 straight weeks of inflows ($5.9bn)
European equities the new darling: 5th consecutive week of inflows ($15bn over past 5 weeks – Chart 2)…
…note following outflows in 11 out of past 13 weeks, EM equity funds record largest weekly inflows ($1.6bn) since Sep’14…
…and quietly, TIPS funds post largest weekly inflows ($0.5bn) since May’12