Equity funds saw record inflows for the week ended 14th of March according to the latest fund flows update from analysts at HSBC.
According to the report, equity funds in both emerging and developed markets reported saw inflows of $43.4 billion for the week, the highest level recorded. Flows into US equity funds dominated the space according to the report.
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However, emerging markets market equity funds have also attracted plenty of attention from investors. According to HSBC’s analysis, for the week to 14 March, inflows totaled $2.6 billion, taking year-to-date inflows to a total of $40.2 billion, the highest reported level since 2001.
Emerging market funds have been the flavor of the year for investors in 2018. According to HSBC’s analysis, over the past three months developed market equity funds have seen inflows totaling 1% of assets under management, compared to 3.5% of assets under management for emerging market equity funds.
Over the past month, emerging market fund inflows have totaled nearly 1% of assets under management compared to around 6% for developed market equity funds.
The same can be said for bond funds. Year-to-date inflows into emerging market bond funds total 2.5% of assets under management, that’s compared to just 0.5% for developed market bond funds.
According to the data supplied by HSBC, since the financial crisis, cumulative inflows into emerging market equity funds have totaled 30% of assets under management.
At the beginning of 2013, inflows peaked at more than 40% of assets under management but reversed following the taper tantrum and subsequent concerns about China’s ability to continue growing at its current rate. Meanwhile, cumulative inflows into developed market equity funds total less than 5% of assets under management from the beginning of 2007.
It seems that developed market investors have been far more keen to commit cash to fixed income funds over the past decade. Inflows into developed market fixed income funds have exceeded 75% of assets under management over the past ten years, although emerging market funds have attracted nearly 125% of assets under management since 2007.
