20160215-三星证券-Volatility_fuels_flight_to_safety_12页_1mb

Fund Flow Weekly Summary

Core Content

This report provides an overview of global and regional fund flows for the week of February 4–11, 2016. It discusses both equity and bond fund movements, highlighting the trend of a "flight to safety" as investors become more risk-averse due to global market uncertainties, particularly driven by fluctuating oil prices and potential rate hikes. The analysis includes data on foreign and domestic flows, and details the net buying activity in specific Korean stocks by different investor types.

Main Points

• Flight to Safety Resumed: Global market jitters have led to a renewed flight to safety, with both equity and bond funds experiencing net outflows in emerging markets (EMs) and developed markets (DMs).

• Equity Fund Flows:

  • Global: Net outflows of USD386 million, with a 0.0% change in assets under management (AUM).
  • DMs: Net outflows of USD5,662 million, with a 0.1% change in AUM.
  • EMs: Net outflows of USD1,141 million, with a 0.2% change in AUM.
  • Asia ex Japan: Net outflows of USD760 million, with a 0.3% change in AUM.
  • Asia Pacific: Net outflows of USD911 million, with a 0.3% change in AUM.
  • Western Europe: Net outflows of USD1,815 million, with a 0.2% change in AUM.
  • North America: Net outflows of USD2,549 million, with a 0.1% change in AUM.
  • Kospi: Net inflows to domestic equity funds weakened for a second week, due to early-Feb rebound and closed markets over the Lunar New Year holidays, but are expected to improve as volatility continues.

• Bond Fund Flows:

  • Global: Net outflows of USD1,944 million, with a 0.3% change in AUM.
  • DMs: Net inflows of USD407 million, with a 0.0% change in AUM.
  • EMs: Net outflows of USD1,072 million, with a 0.4% change in AUM.
  • Asia ex Japan: Net inflows of USD48 million, with a 0.1% change in AUM.
  • Asia Pacific: Net outflows of USD209 million, with a 0.5% change in AUM.
  • North America: Net inflows of USD3,350 million, with a 0.2% change in AUM.

• Foreign Net Flows into and out of Asia:

  • Foreign net selling continued in most Asian equity markets.
  • Korea: Net outflows of USD9 million.
  • India: Net outflows of USD269 million.
  • Indonesia: Net inflows of USD185 million.
  • Philippines: Net outflows of USD5 million.
  • Thailand: Net outflows of USD114 million.
  • Taiwan: Net outflows of USD54 million.
  • China: Net outflows of USD98.2 million.

• Domestic Fund Flows:

  • Domestic equity fund inflows weakened for a second week.
  • Domestic-invested funds: Net inflows of USD70 million, with a 0.1% change in AUM.
  • Overseas-invested funds: Net inflows of USD3 million, with a 0.0% change in AUM.
  • Mixed-type funds: Net inflows of USD6 million, with a 0.0% change in AUM.

Key Information

• Volatility Impact: Volatility in global markets, especially oil prices, has led to a more cautious investment behavior, resulting in net outflows from both equity and bond funds.
• Market Closures: Asian markets were closed during the Lunar New Year holidays, affecting the net flows for the week.
• Kospi Trends: The Korean stock index was impacted by net outflows, but domestic funds are expected to see a rebound in inflows due to continued volatility.
• Top Stocks by Net Buying:
  • Foreign Investors:
    • Samsung Electro-Mechanics (KRW4,302 billion)
    • Hanwha Chemical (KRW3,652 billion)
    • CJ Corporation (KRW6,992 billion)
    • Hotel Shilla (KRW2,567 billion)
    • Samsung SDI (KRW6,340 billion)
    • LG Chem (KRW18,755 billion)
  • Local Institutional Investors:
    • KB Financial Group (KRW10,972 billion)
    • Hyundai Wia (KRW2,720 billion)
    • Hite Jinro (KRW2,146 billion)
    • NCSOFT (KRW5,197 billion)
    • Kia Motors (KRW18,789 billion)

Summary Table

Conclusion

The report underscores the ongoing trend of investors moving towards safer assets due to increased market volatility. While emerging markets continue to face net outflows, the situation in developed markets shows mixed trends, with some regions experiencing inflows. In Korea, the domestic equity fund flows are expected to rebound as volatility persists, and certain stocks are showing net buying activity from both foreign and local institutional investors.