20160425-三星证券-Further_divergence_across_fund_types_12页_1mb

Fund Flow Weekly Summary

Core Content

This report outlines the fund flow trends across global and regional markets for the week of April 14–20, 2016. It highlights the divergence in fund flows between equity and bond-type funds, as well as the performance of domestic and foreign investors in Asian markets.

Main Points

• Equity-type funds experienced net outflows in both developed markets (DMs) and Asia, with the largest outflows in Western Europe and Asia Pacific.
• Bond-type funds saw net inflows in both DMs and emerging markets (EMs), reflecting continued risk appetite.
• Korea recorded a net outflow of USD0.7b, the largest since March 2015, while Japan had a net outflow of USD2.64b.
• Domestic equity funds saw a KRW814.6b outflow over the week, marking the seventh consecutive week of outflows. This suggests potential profit-taking as the Kospi continues to rise.
• Foreign investors in Asian markets showed net buying in most major markets, indicating positive sentiment towards regional equities.
• Local institutional investors also contributed to net buying in Korean stocks, with some companies showing significant inflows.
• ETFs and non-ETFs both experienced outflows in domestic equity funds, suggesting a broad-based trend.

Key Information

Global Equity-type Fund Flows

• Net flows for the week were negative USD7,332m, with a weighted average of -0.1% of AUM.
• Asia Pacific had the largest outflow at USD2,662m (-0.7% of AUM).
• Western Europe and North America also saw significant outflows.
• Global funds showed a net inflow of USD1,458m (0.1% of AUM), while EMs had a net inflow of USD294m (0.0% of AUM).

Global Bond-type Fund Flows

• Net flows for the week were positive USD4,872m, with a weighted average of 0.1% of AUM.
• Asia Pacific had a net inflow of USD41m (0.1% of AUM).
• Western Europe and North America had net inflows of USD383m and USD1,778m, respectively.
• Global bond funds attracted USD1,458m (0.2% of AUM), and EM bond funds had a net inflow of USD1,293m (0.5% of AUM).

Foreign Net Flows in Equities into and Out of Asia

• Korea saw a net outflow of USD302m last week, with cumulative net outflows of USD1,317m over one month.
• Japan had a net outflow of USD4,952m two weeks ago, but the most recent week showed a net outflow of USD3,717m.
• India, Indonesia, and Malaysia had positive net flows from foreign investors.
• Foreign investors showed a net outflow of USD2,662m in Asia Pacific, but positive inflows in EMs.

Domestic Fund Flows

• Domestic equity funds recorded a net outflow of KRW815.6b (1.1% of AUM), with KRW825.6b outflow in domestic-invested funds.
• Domestic equity funds have had a cumulative net outflow of KRW3.6t over the past seven weeks, returning to ytd inflows.
• Overseas-invested funds had a net inflow of KRW10b (0.1% of AUM), while mixed-type funds had a net inflow of KRW19b (0.0% of AUM).
• Local institutional investors showed net outflows in most categories, with some positive inflows in specific sectors.

Weekly Net Flows and Relative Weightings

• Foreign investors showed a net outflow of USD7,332m in equity-type funds, with relative weightings indicating a decline in equity exposure.
• Local institutional investors had a net outflow of USD3,579m, reflecting a decline in bond exposure.
• MSCI Korea and Kospi 200 both highlighted top 10 stocks net bought by foreign and local institutional investors, with foreign investors showing significant outflows in several large-cap companies.

Conclusion

The report highlights a continued divergence in fund flows between equity and bond-type funds, with equity funds experiencing outflows and bond funds seeing inflows. Asia as a whole saw foreign net inflows, while Korea and Japan experienced outflows. Domestic funds also faced outflows, with profit-taking likely due to the Kospi's strength. Local institutional investors had a mixed performance, with some positive inflows in specific stocks.