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Figures from Bank of America Merrill Lynch (BAML), which track
flows through to Wednesday, showed equity funds had seen a
similar inflow as bonds, while gold funds are now on their worst
run in three years after a ninth straight week of outflows.
Emerging market funds eked out their first positive week in four
and the bounceback in bonds means $17 billion has come back over
the last three weeks. That's roughly 40 percent of the $42
billion that poured out in the aftermath of Donald Trump's
election win.
"According to private clients, sentiment is positive, but far
from euphoric," BAML's analysts added.
The bond highlights included the largest inflow in three months
into investment grade bonds at $3.8 billion, a fifth week of
moves into Treasury and government debt funds and a seventh
straight inflow for high yield funds.
Japan secured the equity top spot meanwhile with a $3.1 billion
inflow - its largest in nine weeks. U.S. stocks funds saw a
minor $0.3 billion drop out, while a $0.6 billion gain by
emerging markets was their third in the last eight weeks.
BAML said $2.1 trillion of assets under management were 59
percent in equities, 23 percent in debt, 12 percent in cash and
5 percent other assets.
Equity sector allocation relative to the S&P 500 showed the
biggest overweight in staples (+2.6 percentage points). Private
clients remained broadly overweight on utilities and telecoms
firms but not yet on financials and the biggest underweight was
technology focused funds at -3.8pp.
"By sector (there have been) 16 straight weeks of financials
inflows ($0.9bln); 2 straight weeks of inflows to Real Estate
Investment Trusts ($0.8bn) and the first inflows to healthcare
in 7 weeks ($0.6bn)," BAML added.
(Editing by Susan Thomas)
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