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Europe equity funds latest to catch a lift
Europe equity funds latest to catch a lift

Flows into EPFR-tracked Emerging Markets Equity Funds during the third week of January climbed to their highest level since mid-1Q21 as investors positioned themselves for China’s much anticipated economic rebound and, the anti-inflation rhetoric of the Federal Reserve and European Central Bank (ECB) notwithstanding, an early end to the current interest rate cycles in the US and Europe. Investors also steered $2.5 billion – a 101-week high – into Emerging Markets Bond Funds.

Emerging markets funds catch a wave in mid-January
Emerging markets funds catch a wave in mid-January

Flows into EPFR-tracked Emerging Markets Equity Funds during the third week of January climbed to their highest level since mid-1Q21 as investors positioned themselves for China’s much anticipated economic rebound and, the anti-inflation rhetoric of the Federal Reserve and European Central Bank (ECB) notwithstanding, an early end to the current interest rate cycles in the US and Europe. Investors also steered $2.5 billion – a 101-week high – into Emerging Markets Bond Funds.

Bond Funds buoyed by lower inflation
Bond Funds buoyed by lower inflation

Evidence that inflation is falling and global growth is stalling gave EPFR-tracked Bond Funds a shot in the arm during the first full week of January. Ahead of December’s CPI number, which showed US inflation grew at a 13-month low of 6.45% in the final month of 2022, investors committed over $17 billion to all Bond Funds.

Investors tip-toe into the New Year
Investors tip-toe into the New Year

Over $110 billion – a 131-week high – flowed into EPFR-tracked Money Market Funds during the week ending Jan. 4 as investors surveyed an investment landscape still being reshaped by inflation, tighter monetary policy and geopolitical forces.

2022: A tale of active versus passive
2022: A tale of active versus passive

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.

Retail flows: The wisdom of “dumb money”
Retail flows: The wisdom of “dumb money”

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.

Russian vortex chills European fund groups
Russian vortex chills European fund groups

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.