Main Point
* Slow show: slow modest inflows to bonds ($2.1bn); muted outflows from equities ($0.8bn); flows mimicking subdued Nov volume and volatility
* Selling inflation-plays: 19th consecutive week of bank loan redemptions; 11th consecutive week of TIPS redemptions; 4th consecutive week of materials redemptions
* IG over HY: 48th consecutive week of IG inflows but renewed redemptions from HY bond funds
* Japan over Europe: redemptions from Europe in 18/20 weeks (Chart 1) but good inflows to Japan ($1.2bn)
* EM vs DM: interesting to note improving trend in EM equity flows vs DM
>>> Asset Class Flows
* Equities: small $0.8bn outflows (note: $1.7bn outflows via mutual funds)
* Bonds: $2.1bn inflows (9 straight weeks) (Table 1)
* Precious metals: $0.3bn outflows (outflows in 12 out of past 13 weeks)
* MMF: $2.7bn inflows (5 straight weeks)
* Europe: $2.0bn outflows (outflows in 11 out of past 12 weeks)
* Japan: $1.2bn inflows (only major country/region to see inflows)
* US: $1.2bn outflows (first outflows in 4 weeks – mostly via mutual funds)
* EM: small $0.1bn outflows (Table 2)
By sector, financials-funds see first inflows in 6 weeks ($0.6bn); 4 straight weeks of redemptions from materials-funds
>>> Fixed Income Flows
* 48 straight weeks of inflows to IG bond funds ($6.0bn) (Chart 3)
* First outflows from HY bond funds in 5 weeks ($1.1bn)
* First outflows from EM debt funds in 4 weeks ($0.1bn)
* 19 straight weeks of outflows from bank loan funds ($0.3bn)
* 11 straight weeks of outflows from TIPS ($0.1bn)
* $2.8bn outflows from govt/tsy funds (largest in 9 weeks)