Monday, August 4, 2014

Fund Flow Records Smashed:

Fund Flow Records Smashed: Equity Funds Get Record $352 Billion Inflow, Bond Funds Lose Record $86 Billion
Read more at http://globaleconomicanalysis.blogspot.com/2014/01/fund-flow-records-smashed-equity-funds.html#Fg9ZcEV7uBXYESOE.99
 
 
TrimTabs Investment Research reported today that U.S.-listed equity mutual funds and exchange-traded funds took in a record $352 billion in 2013, smashing the previous record inflow of $324 billion in 2000.  Meanwhile, U.S.-listed bond mutual funds and exchange-traded funds redeemed a record $86 billion, topping the previous record outflow of $62 billion in 1994.

“The Fed finally succeeded last year in its long-running campaign to coax fund investors to speculate,” said David Santschi, Chief Executive Officer of TrimTabs.  “The ‘great rotation’ that some market strategists long anticipated is under way.”

In a note to clients, TrimTabs explained that U.S. equity mutual funds and exchange-traded funds received $156 billion in 2013, the first inflow since 2007 and the biggest inflow since the record inflow of $274 billion in 2000.  Global equity mutual funds and exchange-traded funds received $195 billion, edging past the previous record inflow of $183 billion in 2006.

“Retail investors are particularly enthusiastic about non-U.S. stocks, which should make contrarians wary,” said Santschi. “Global equity mutual funds took in $137 billion last year, which was more than seven times the inflow of $18 billion into U.S. equity mutual funds.  These highly disproportionate inflows occurred even though non-U.S. stocks as a whole badly lagged U.S. stocks.”

TrimTabs also reported that bond mutual funds and exchange-traded funds redeemed $86 billion last year, the first outflow since 2004 and the biggest outflow on record, surpassing the previous record outflow of $62 billion in 1994.

“Bond funds have suffered seven consecutive months of redemptions for the first time since late 1999 and early 2000,” noted Santschi.  “Nevertheless, the outflow of $196 billion in the past seven months reverses just a fraction of the inflow of $1.20 trillion from 2009 through 2012.”
Read more at http://globaleconomicanalysis.blogspot.com/2014/01/fund-flow-records-smashed-equity-funds.html#Fg9ZcEV7uBXYESOE.99
 

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