- Both bonds (+$92bn YTD) and stocks (+$47bn YTD) continue to see inflows but flows into bonds stronger than stocks since Mar’14
- Our Fund Manager Survey shows that rate expectations still playing catch-up with decline in government bond yields (Chart 2). And with no outsized weekly jump in bond flows cannot say capitulation into bonds complete (Chart 3).
- Following a record 48 straight weeks of inflows and big outperformance, European equity funds see first week of outflows ($0.2bn)
- Watch our Bull & Bear Index of investor sentiment, which has jumped to 7.6 from 4.3 in March, driven primarily by end of big redemptions from HY, EM debt & EM equity funds
>>> Asset Class Flows
- Equities: $1.0bn inflows (note divergence between $3.1bn into ETF’s and $2.1bn out of long-only funds)
- Bonds: $6.3bn inflows (12 straight weeks) (Table 1)
- Commodities: flat
>>> Equity Flows
- First outflows ($0.2bn) from European equity funds in 48 weeks! (Chart 4)
- EM ekes out $0.4bn inflows (inflows in 8 out of past 9 weeks) (Table 2)
- Small inflows to Japan vs small outflows from US equity funds
- Outflows from US growth funds slow to $0.6bn; US value funds see third straight week of modest inflows ($0.2bn)
- By sector, inflows to infrastructure funds ($0.2bn) and outflows from financials ($0.2bn)
>>> Fixed Income Flows
- 23 straight weeks of inflows to IG bond funds ($9.2bn) (caveat: $7bn due to inflows to one fund)
- $5.1bn outflows from Govt/Tsy funds (caveat: $5bn due to outflows from one fund)
- 16 straight weeks of inflows to HY bond funds ($0.6bn)
- 9 straight weeks of inflows to EM debt funds ($1.1bn) (largest in 7 weeks)
- 6 straight weeks of inflows to Muni bond funds
- 7 straight weeks of redemptions ($0.4bn) from floating-rate debt funds (following 94 straight weeks of inflows)