20160118-三星证券-Cash_exits_equities,_enters_bonds_12页_1mb

Fund Flow Weekly Summary

Core Content

This report provides an overview of global and regional fund flows for the week ending January 13, 2016. It highlights the trends in equity and bond fund flows, focusing on the movements of foreign and domestic investors across different markets.

Main Points

• Risk Aversion Deepens: The week saw a significant outflow from equity and emerging market (EM) bond funds, indicating a continued flight to safety as investors responded to economic concerns, a Chinese stock market rout, and the weakening of EM currencies.

• Equity Fund Flows:

  • North America: Continued to see strong net outflows, with a total of USD12.499 billion.
  • Western Europe: Experienced its first net outflow in 14 weeks, albeit minor.
  • Asia Pacific: Recorded a net inflow of USD1.64 billion, marking the seventh consecutive weekly inflow.
  • China: Enjoyed a second weekly net inflow, attributed to buying on weakness following steep declines.
  • Korea: Domestic equity funds saw a net inflow of KRW253.8 billion, which is a technical rebound rather than a sign of improved risk appetite.
  • Non-ETFs: Domestic equity funds saw a net inflow for the second week in a row, while ETFs experienced a net outflow.

• Bond Fund Flows:

  • North America: Recorded a net inflow of USD5.055 billion.
  • Global Bond Funds: Suffered a net outflow of USD1.322 billion.
  • Western Europe: Continued to see net outflows.
  • EM Bond Funds: Latin America saw a small net inflow, while GEM and other EM regions experienced net outflows.

• Foreign Net Flows in Asia:

  • Korea: Net inflow of USD390 million, but this was a reversal from previous weeks.
  • India: Net outflow of USD187 million.
  • Thailand, Indonesia, Philippines, and others: All experienced net outflows.
  • Cumulative Flows: Foreign investors showed net outflows across all Asian markets over the past month and three months, with some notable exceptions in the longer-term data.

• Domestic Fund Flows:

  • Domestic equity funds saw a net inflow of KRW254 million, driven by local institutional investors.
  • Domestic institutional investors continued to show net inflows into equity funds, especially in the context of the Kospi's decline below 1,950, which has historically attracted buying.

Key Information

• Global Equity-Type Fund Flows:

  • Total net outflow was USD11,886 million, with the largest outflow from North America (USD12,499 million).
  • Asia Pacific had the largest inflow (USD1,649 million), while Western Europe had a net outflow of USD126 million.
  • Domestic equity funds saw a net inflow of KRW253.8 billion.

• Global Bond-Type Fund Flows:

  • Net inflow for North America was USD5,055 million, while global bond funds saw a net outflow of USD1,322 million.
  • Western Europe continued to have net outflows, and EM bond funds, including GEM, saw net exits.
  • Domestic bond-type funds had a net outflow of USD422 million.

• Top Stocks Bought:

  • Foreign Investors: Korea Aerospace Industries, Kepco, and LG Electronics were among the top stocks bought in terms of value.
  • Local Institutional Investors: Hyundai E&C, Hyundai Mobis, and Samsung Electronics were the top stocks bought based on the portion of market cap.

Conclusion

The week was marked by a continued flight to safety, with investors favoring bonds over equities and reducing exposure to emerging markets. Domestic investors, particularly institutional ones, showed a shift towards equity-type funds, indicating a possible recovery in the market. However, foreign investors remained cautious, with net outflows across most Asian markets, suggesting a lack of confidence in the region's equity markets. The report serves as a general market overview and should not be used as individual investment advice.