A final look to EPFR-tracked equity funds in December 2022, with alternative, balanced, bond and money market funds experiencing significant redemptions as investors grapple with a highly uncertain outlook for the first half of next year.
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Global Navigator: More outflows than inflows | Fed hikes
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.
Quants Corner: 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.
Global Navigator: Mixed signals for emerging markets
Despite China’s first steps away from the zero-Covid policies that have sapped its economy and some optimistic forecasts for 2023, investors tapped EPFR-tracked Emerging Markets Equity Funds for $2.4 billion – a 13-week high outflow – in early December 2022.
Global Navigator: Re-pricing for US rate hike
Mixed earnings reports from the closely watched American technology sector, the European Central Bank (ECB) starting to talk the anti-inflation talk and oil prices hitting levels last seen in 2004 gave investors additional pause for thought going into February. Those investors, already staring down the barrel of multiple US interest rate hikes this year, stepped up their redemptions from Bond Funds and looked for alternatives to US equity without completely abandoning that asset class.
Global Navigator: Tiptoeing into the Christmas holidays
Flows to EPFR-tracked fund groups during the first week of December tilted towards the positive – at least for the US. Investors steered money into US Equity Funds for the 11th straight week, US Bond and Global Equity Funds rebounded from their first outflows in over seven and 17 months, respectively, and US Money Market Funds took in fresh money for the seventh time in the past eight weeks.
Global Navigator: Investors parse the meaning of transitory
Hopes that the impact of Covid’s Omicron variant will prove transitory, concern that it will not, and fears that inflation is here to stay whip-sawed global markets during the final days of November. Concerns about the latter issue were crystalized by recently reappointed US Federal Reserve Chair Jerome Powell’s admission that price pressures could spur the Fed to accelerate the tapering of its asset purchases.
EPFR Papers: China Evergrande – Fixed on its fate
The fate of China’s Evergrande, the second-largest developer in China by sales, could have a knock-on effect on China’s real estate sector and the international markets, in what doomsayers have warned could well be another Lehman moment for financial markets.
Global Navigator: Earnings & inflation both roar | November
From a fund flow perspective, the week ending Nov. 10 saw groups and themes that have fared well for most of 2021 continue to attract fresh money. Meanwhile, four out of five US companies that have reported third quarter earnings exceeded consensus expectations.
Global Navigator: Dealing with inflated expectations
Expectations for economic growth, US job creation and the transitory nature of inflation all took a knock during the second week of October as supply chain issues and rising energy prices continue to bite.