[UNLOCKED] Fund Flow Survey | Not The Longest But The Fastest

Takeaway: Domestic equity mutual funds continue on the sharpest draw down in history averaging losses of $-3.7 billion a week.

Editor's Note: This is a complimentary research note originally published April 28, 2016 by our Financials team. If you would like more info on how you can access our institutional research please email sales@hedgeye.com.

 

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Investment Company Institute Mutual Fund Data and ETF Money Flow:

 

All stock products lost funds in the 5-day period ending April 20th, totaling -$4.0 billion in withdrawals from equity mutual funds, and -$1.9 billion in redemptions from equity ETFs. The following table puts historical context around the current losing streak within domestic equity funds which is now the second longest at 60 weeks and continues to be the fastest on record with investors pulling -$3.7 billion per week.

 

[UNLOCKED] Fund Flow Survey | Not The Longest But The Fastest - ICI20

 

In the most recent 5-day period ending April 20th, total equity mutual funds put up net outflows of -$4.0 billion, trailing the year-to-date weekly average outflow of -$1.6 billion and the 2015 average outflow of -$1.6 billion.

 

Fixed income mutual funds put up net inflows of +$4.3 billion, outpacing the year-to-date weekly average inflow of +$1.8 billion and the 2015 average outflow of -$475 million.

 

Equity ETFs had net redemptions of -$1.9 billion, trailing the year-to-date weekly average outflow of -$1.0 billion and the 2015 average inflow of +$2.8 billion. Fixed income ETFs had net inflows of +$1.5 billion, trailing the year-to-date weekly average inflow of +$1.8 billion but outpacing the 2015 average inflow of +$1.0 billion.

 

[UNLOCKED] Fund Flow Survey | Not The Longest But The Fastest - ICI1

 

Mutual fund flow data is collected weekly from the Investment Company Institute (ICI) and represents a survey of 95% of the investment management industry's mutual fund assets. Mutual fund data largely reflects the actions of retail investors. Exchange traded fund (ETF) information is extracted from Bloomberg and is matched to the same weekly reporting schedule as the ICI mutual fund data. According to industry leader Blackrock (BLK), U.S. ETF participation is 60% institutional investors and 40% retail investors.



Most Recent 12 Week Flow in Millions by Mutual Fund Product: Chart data is the most recent 12 weeks from the ICI mutual fund survey and includes the weekly average for 2015 and the weekly year-to-date average for 2016:

 

[UNLOCKED] Fund Flow Survey | Not The Longest But The Fastest - ICI2

 

[UNLOCKED] Fund Flow Survey | Not The Longest But The Fastest - ICI3

 

[UNLOCKED] Fund Flow Survey | Not The Longest But The Fastest - ICI4

 

[UNLOCKED] Fund Flow Survey | Not The Longest But The Fastest - ICI5

 

[UNLOCKED] Fund Flow Survey | Not The Longest But The Fastest - ICI6



Cumulative Annual Flow in Millions by Mutual Fund Product: Chart data is the cumulative fund flow from the ICI mutual fund survey for each year starting with 2008.

 

[UNLOCKED] Fund Flow Survey | Not The Longest But The Fastest - ICI12

 

[UNLOCKED] Fund Flow Survey | Not The Longest But The Fastest - ICI13

 

[UNLOCKED] Fund Flow Survey | Not The Longest But The Fastest - ICI14

 

[UNLOCKED] Fund Flow Survey | Not The Longest But The Fastest - ICI15

 

[UNLOCKED] Fund Flow Survey | Not The Longest But The Fastest - ICI16



Most Recent 12 Week Flow within Equity and Fixed Income Exchange Traded Funds: Chart data is the most recent 12 weeks from Bloomberg's ETF database (matched to the Wednesday to Wednesday reporting format of the ICI), the weekly average for 2015, and the weekly year-to-date average for 2016. In the third table are the results of the weekly flows into and out of the major market and sector SPDRs:

 

[UNLOCKED] Fund Flow Survey | Not The Longest But The Fastest - ICI7

 

[UNLOCKED] Fund Flow Survey | Not The Longest But The Fastest - ICI8



Sector and Asset Class Weekly ETF and Year-to-Date Results: In sector SPDR callouts, the industrials XLI ETF gained +$399 million or +6% last week.

 

[UNLOCKED] Fund Flow Survey | Not The Longest But The Fastest - ICI9



Cumulative Annual Flow in Millions within Equity and Fixed Income Exchange Traded Funds: Chart data is the cumulative fund flow from Bloomberg's ETF database for each year starting with 2013.

 

[UNLOCKED] Fund Flow Survey | Not The Longest But The Fastest - ICI17

 

[UNLOCKED] Fund Flow Survey | Not The Longest But The Fastest - ICI18



Net Results:

The net of total equity mutual fund and ETF flows against total bond mutual fund and ETF flows totaled a negative -$11.7 billion spread for the week (-$5.9 billion of total equity outflow net of the +$5.7 billion inflow to fixed income; positive numbers imply greater money flow to stocks; negative numbers imply greater money flow to bonds). The 52-week moving average is -$977 million (negative numbers imply more positive money flow to bonds for the week) with a 52-week high of +$20.2 billion (more positive money flow to equities) and a 52-week low of -$19.0 billion (negative numbers imply more positive money flow to bonds for the week.)

  

[UNLOCKED] Fund Flow Survey | Not The Longest But The Fastest - ICI10

 


Exposures:
The weekly data herein is important for the public asset managers with trends in mutual funds and ETFs impacting the companies with the following estimated revenue impact:

 

[UNLOCKED] Fund Flow Survey | Not The Longest But The Fastest - ICI11


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