Going into the final days of 1Q17, redemptions from U.S. Equity Funds jumped to a 38-week high as investors again questioned whether President Trump’s administration has the necessary focus and political skills to get its economic agenda through Congress. Meanwhile EPFR Global-tracked Emerging Markets Equity Funds recorded their biggest inflow in over seven months, Japan Equity Funds took in over $1 billion for the eighth time in the past 11 weeks and Global Equity Funds extended their strong start to the year.
Doubts about the U.S. reflation story also helped Utilities Sector Funds post consecutive weekly inflows for the first time since late 3Q16 and boost flows into Gold Funds to a five-week high.
Overall, the week ending March 22 saw investors commit a net $7.8 billion to EPFR Global-tracked Bond Funds while redeeming $1.1 billion from Equity Funds — their first collective outflow year-to-date — and over $16 billion from Money Market Funds. Dividend Equity Fund flows, which jumped to a near two-year high the previous week, turned negative again as the money committed to a handful of big U.S. ETFs flowed out.
At the country and asset class levels position, Bank Loan and Inflation Protected Bond Funds extended inflow streaks stretching back to early November and early December respectively. Flows into France Equity Funds hit a six-week high, Switzerland Equity Funds posted their biggest outflow since mid-2Q08, Malaysia Equity Funds took in fresh money for the 11th week in a row, Russia Equity Funds’ recent run of outflows came to an end and Chile Equity Funds recorded their biggest weekly inflow in five months.
Cameron Brandt is Director of Research for EPFR Global, an Informa Financial Intelligence company.