Flows to and from EPFR-tracked fund groups during the final week of March continued to paint a picture of risk aversion and fear among investors. For the third week running liquidity funds recorded above average inflows while High Yield, Bank Loan, Emerging Markets Bond and Alternative Funds extended their current outflow streaks.
The final week of 2022 saw EPFR-tracked Bond Funds post consecutive weekly outflows for the first time since mid-October, capping a year when the overall group smashed its previous outflow record as central banks scrambled to contain inflation running at multi-decade highs.
Behind the headline number, however, was a marked shift from active to passive management.
Overall, the second week of December 2022 saw all Equity Funds record a collective inflow of $17.9 billion while Bond Funds absorbed $2.3 billion.
In this blog, we utilize some of EPFR’s oldest strategies to test the predictive powers of the retail flows captured in the universe of 150,000 mutual fund and ETF share classes encompassing some $47 trillion in AUM that EPFR tracks on a daily, weekly and monthly basis.
With the European Central Bank meeting the day after the latest reporting period and US Federal Reserve policymakers convening five days later, flows to EPFR-tracked fund groups were predictably subdued in early June. Investors opted for liquidity, with flows into Money Market Funds hitting a nine-week high, while steering clear of most fund groups tied to European and emerging markets assets.
Flows and allocations to different sectors and sector-related fund groups over the past 14 months have been marked by conviction, record inflows – and sharp changes of direction. Learn how EPFR Data captures some significant thematic shifts, in our Sector rotation series.
Flows and allocations to different sectors and sector-related fund groups over the past 14 months have been marked by conviction, record inflows – and sharp changes of direction. Learn how EPFR Data captures some significant thematic shifts, in our Sector rotation series.
Russia’s assault on Ukraine, which started on Feb. 24, sent investors scrambling for cover while they adjusted to the rapidly changing outlook for energy and financial markets, global supply chains and the security of Europe. Going into March they pulled record-setting sums out of Europe Equity Funds, extended Europe Bond Funds longest outflow streak since 4Q18 and redeemed more than $5 billion from Europe Money Market Funds.
Portugal, Ireland, Italy, Greece and Spain were hit badly in Europe’s 2009 sovereign debt crisis. However, equity funds dedicated to the Club Med are recovering in 2021.
With Covid regaining center stage, much of the US on holiday and many central banks rummaging around in their inflation containment toolkit, flows to most EPFR-tracked fund groups were understandably muted during the week ending November 24.
