20160111-三星证券-Bond_funds_favored_in_roiling_markets_12页_1mb

Fund Flow Weekly Summary

Core Content

This report provides an analysis of global and regional fund flows for the week of January 1–7, 2016. It highlights the trends in equity and bond fund inflows and outflows across different regions, including developed markets (DMs), emerging markets (EMs), and specific countries in Asia, such as Korea, Taiwan, and Thailand.

Main Points

• Global Market Volatility: Investor sentiment was negative due to uncertainties, with Chinese markets declining and oil prices falling.

• Equity Fund Flows:

  • Global equity funds experienced a net outflow of USD1,039m for the week, with the largest outflow in North America (USD11.979b).
  • In developed markets, equity funds saw a net outflow of USD8,352m, while in emerging markets, they had a net outflow of USD473m.
  • Domestic equity funds had a net loss of KRW64b, but overseas-invested funds saw a gain of USD21b.
  • ETFs experienced a net loss of USD278b, while non-ETF funds attracted USD231.6b, indicating a shift towards short-term investments.

• Bond Fund Flows:

  • Bond funds globally saw a net inflow of USD3,283m, marking the first net inflow in four weeks.
  • In developed markets, bond funds had a net inflow of USD2,862m, with Western Europe and North America showing significant inflows of USD1,431m and USD1,263m, respectively.
  • Emerging markets also experienced a net inflow of USD420m, with Latin America showing the first net inflow in six weeks.

• Asia-specific Flows:

  • Korea: Foreign investors had a net outflow of KRW172b, while local institutions showed a net inflow of KRW7,869b.
  • Taiwan: Foreign investors had a net outflow of KRW681b, and local institutions had a net inflow of KRW6,862b.
  • Thailand: Foreign investors had a net outflow of KRW184b, and local institutions had a net inflow of KRW6,862b.
  • India: Foreign investors had a net outflow of KRW29.9b, and local institutions had a net inflow of KRW6,862b.
  • Indonesia and Philippines also showed net outflows from foreign investors, with local institutions showing mixed inflows and outflows.

• Top Stocks by Net Buying:

  • Foreign Investors: Korea Aerospace Industries, Hite Jinro, and others were the top stocks net bought in terms of value and portion of market cap.
  • Local Institutional Investors: LG Electronics, Lotte Chemical, and others were the top stocks net bought in the Kospi 200 index.

Key Information

• Inflows and Outflows:

  • Equity funds in most regions saw net outflows, with North America being the most affected.
  • Bond funds experienced net inflows in all regions, with Western Europe and North America showing notable gains.
  • Domestic equity funds turned to a net loss for the first time in three weeks, while domestic bond funds saw a net gain of USD856b.

• Investor Behavior:

  • ETFs suffered from net outflows, while non-ETF funds attracted inflows, indicating a preference for short-term strategies.
  • Local institutional investors showed a preference for certain stocks, such as LG Electronics and Lotte Chemical, while foreign investors favored companies like Korea Aerospace Industries and Hite Jinro.

• Market Context:

  • The report notes that while some regions saw inflows, the overall sentiment was negative due to global market uncertainties.
  • The cumulative net flows over the past 52 weeks and 4-week averages are provided for context.

Conclusion

The report outlines a shift in investor behavior towards safer assets, with bond funds seeing net inflows and equity funds experiencing outflows. While certain Asian markets like Korea, Taiwan, and Thailand saw net outflows from foreign investors, local institutions remained active in buying stocks. The data highlights the impact of global market volatility on regional fund flows and provides insights into the preferences of different investor types.