Wednesday, April 22, 2015

Global equity mutual funds, ETFs post $88 billion inflows in 2015: TrimTabs

http://www.reuters.com/article/2015/04/21/us-investing-fundflows-trimtabs-idUSKBN0NC1IW20150421


Reuters) - Global equity mutual funds and exchange-traded funds attracted $88.3 billion of net inflows so far in 2015, putting them on track to surpass the previous four-month record total of $86 billion from December 2005 through March 2006, TrimTabs Investment Research said on Tuesday.
TrimTabs said strong investor interest in non-U.S. equities is broadening from Europe and Japan into emerging markets.

"Heady gains in Chinese stocks are attracting loads of American money," said TimTabs Chief Executive Officer David Santschi. "ETFs focused on Chinese stocks shot up 14 percent in the past month."

Even ahead of China's stimulus measure announced on Sunday, ETFs focused on Chinese equities posted 22 consecutive days of inflows totaling $1.6 billion, TrimTabs said.
The People's Bank of China on Sunday cut by one percentage point the cash banks must hold in reserve, freeing up more than $200 billion for lending.

"For now, central bank stimulus measures are propping up financial asset prices around the world," Santschi said. "The long-term consequences of these policies may not be as pleasant."

(Reporting By Jennifer Ablan; Editing by Chizu Nomiyama and Jonathan Oatis)

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