Equity MFs See Strongest Outflows Since Dec. 2015
Domestic and international equity outflows drive equity MF deterioration, partially offset by strength in fixed income.
Executive summary:
Long-term mutual funds continue to post outflows for the fourth consecutive week, according to the latest data from EPFR Global. Outflows this week were primarily driven by a sharp increase in domestic equity fund outflows and the largest outflows in international equity funds since the end of June. All style categories of domestic equity funds posted deteriorating outflows, while an inflection to outflows in global DM funds drove international equity funds into outflows. Strong bond fund inflows partially offset equity fund outflows. Domestic taxable funds posted accelerating inflows, as shortterm and total return funds generated stronger inflows w/w. International taxable funds also inflected to inflows, primarily due to an improvement in all style categories. Muni funds inflows accelerated w/w while balanced funds generated outflows. ETF outflows deteriorated, as US equity ETFs inflected back to outflows, partially offset by an improvement in global DM equity ETFs. Bond ETFs continued to generate inflows, albeit at a slower pace than last week.