BAML’s latest Flow Show report

Some interesting investment flows data from Michael Hartnett and his Global Equity Strategy team at Bank of America Merrill Lynch…

YTD inflows of $53bn to equities & $80bn to bonds consistent with modest positive
equity (2.5%) and bond (3.8%) returns YTD

Equity Flows
$6.0bn inflows to US equity funds (all inflows via ETF’s – IWM and SPY
especially)
46 straight weeks of inflows to EU equity funds ($1.9bn) (Table 2)
EM sees modest $0.5bn inflows (inflows in 6 out of past 7 weeks)
$0.5bn inflows to Japan (largest in 4 weeks)
Outflows from US growth funds continue ($1.3bn); US value funds see small
inflows ($0.4bn)
By sector, winners are energy ($0.8bn) and real estate funds ($0.6bn)

Fixed Income Flows
21 straight weeks of inflows to IG bond funds ($3.4bn)
14 straight weeks of inflows to HY bond funds ($1.2bn)
7 straight weeks of inflows to EM debt funds ($1.1bn) (Chart 3)
5 straight weeks of redemptions from floating-rate debt funds (following 94
straight weeks of inflows)
Munis, Govt bonds and TIPS also see inflows

Source:

Frothy Inflows, Speculative Fervor AND High Cash Levels
Bank of America Merrill Lynch – May 15th 2014