Latest EPFR fund flow data reports outflows for equity funds and money market funds, and inflows towards bond funds, and China and India equity funds.
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Market Insights: Money market
As we head into Q2 2023, EPFR’s iMoneyNet team shares key trends we’re seeing on asset allocation, yields and maturities for money market flows.
A liquid start to the second quarter
US Money Market Funds kicked off April by recording their fourth straight inflow in excess of $50...
March’s pain may be April’s gain
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.
Craving certainty, markets get uncertainty
How much longer will the war in Ukraine go on? How much further will central banks go before they deem inflation contained? How much damage will the latest US debt ceiling standoff do? How widely will the benefits of China’s anticipated economic rebound be felt? What direction will Japanese monetary policy take?
Glass remains half full in late January
Actions spoke louder – to equity investors – than words coming into February, with the fact that the latest interest rate hike by the US Federal Reserve was only 25 basis points, boosting flows to US Equity Funds and other groups despite the accompanying verbal warning that the battle against inflation is “not fully done.”
Off the wires: Japan government bonds: Is there a coming outflow?
Is there a coming outflow in Japan’s long-dated government bonds? Where might this money be reallocated to? Who is the investor? EPFR Quant Analyst Vikram Srimurthy, reflects on The Wall Street Journal article, ‘Japan’s 10-Year Government Bond Yield Breaches New Cap’.
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.
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
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.