2017 has brought synchronized equity inflows to all major regions, with emerging markets and Japan drawing the most money as proportion of assets under management, Citigroup strategists led by Robert Buckland write in a note.
- Inflows into all assets so far amount to $368 billion, close to 2012’s all-time high, Citigroup says citing EPFR Global data
- While very high inflows in 2000 and 2007 were an indicator of impending bear markets, recent inflows “reassuringly” are well below those seen at previous market peaks
- EM and developed market equity funds have seen inflows every month YTD, a trend last seen in 2006
- Flows into Europe picked up as French political risks receded, but at the expense of U.S. equities, which have started to see redemptions