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The
equity redemptions were led by $4.2 billion of outflows from
U.S. stocks and $2.6 billion from Japan. These were the largest
outflows for Japanese equity funds since November 2014 and
extended the longest outflow streak since February 2012.
European equities suffered $2.1 billion of outflows and are now
in their 11th consecutive week of redemptions, the longest
outflow streak since May 2010, said BAML, which also uses data
from fund flows research house EPFR Global.
The outflows came despite European equities gaining 3.3 percent
so far this month, with Japanese stocks up 4.9 percent and U.S
stocks rising 1.5 percent.
But in a continuation of the previous week's trend, investors
preferred fixed income, ramping up bond exposure by $4.9
billion. The higher yields on corporate credit were sought in
preference to safe-haven government bonds and treasuries, with
investment grade credit attracting $2.9 billion, emerging market
debt $1.3 billion and high-yield bond funds $800 million.
BAML noted that emerging market debt funds had attracted $9.2
billion over nine straight weeks of inflows, but this follows a
massive $102 billion of redemptions over the past three years.
The bank added that its bull and bear index, a gauge of market
sentiment, was at a 10-month high of 4.9, putting it in neutral
territory. This is up sharply from the February and March lows
of 0.1, which marked extreme bearishness in the market.
(Editing by David Goodman)
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