Via Goldman Sachs -> Summary for the Week Ending Jan-20th Below...
- Flows into mutual funds & related investment products showed elevated demand across equities & fixed income, plus another surge in cross-border flows.
- Net flows into global equity funds remained positive in the week ending January 20th, driven by strong flows into EM (emerging market) equity funds (+$8bn vs. +$7bn in the week prior). Flows into global EM benchmarks & mainland China-dedicated equity funds were especially strong.
- US & UK continued to see outflows while Western Europe ex-UK were positive for the second week in a row.
- At the sector level, flows were more subdued -> cyclical & defensive sectors both saw net outflows.
- Flows into global fixed income funds were fairly strong - including those into riskier sectors, in line with Goldman's strategy team's expectations of a shift from "TINA" to "TARA" (+$14bn vs. +$17bn in the week prior).
- Agg-type funds & IG Credit saw the largest inflows in dollar terms; investors showed a clear preference for long-duration bond funds vs. short-duration & inflation-protected bond funds.
- EM fixed income saw inflows across hard & local currency bond funds.
- Money Market fund assets increased by less than $1bn
- Cross-border FX flows were strong once again... likely reflecting a boost in global risk sentiment.
- EUR & CNY have clearly seen stronger foreign flows over the past 2 weeks -> but some of this has occurred alongside elevated flows globally overall.
...Most Important Takeaway?
US Equity Outflows 3-Weeks In a Row...
Submitted January 21, 2023 at 11:52PM by Winter-Extension-366 https://ift.tt/CbLJYwD
