EPFR Fund Flows
By Cameron Brandt 17 Jan 2020
The second week of 2020 saw US President Donald Trump and Chinese Vice Premier Liu He sign the first of what is expected to be a series of trade deals between the world’s two largest economies. It also saw seven of the eight major regional Equity Fund groups tracked by EPFR record inflows that ranged from $228 million for Latin America Equity Funds to $6.3 billion for Global Equity Funds. The renewed appetite for exposure to equities was not fueled by a rotation out of fixed income funds. Although down from last week’s record-setting total, Bond Funds still attracted over $16 billion. Since the beginning of last year, they have compiled a 54-week, $721 billion inflow streak with $495 billion of that total going to US Bond Funds. Overall, EPFR-tracked Equity Funds took in a net $12.5 billion during the week ending Jan. 15, Bond Funds $16.5 billion, Alternative Funds $724 million and Balanced Funds $33 million while $23.8 billion flowed out of Money Market Funds. Investors continue to pour money into funds with socially responsible (SRI) or environmental, social and governance (ESG) mandates, with the latest week’s total the third highest on record. Personal conviction, the benefits of an additional layer of due diligence and solid performance are all factors in the strong run SRI/ESG funds are enjoying.