Since the Bank of England announced it would bring back its quantitative easing program money has rushed into UK assets. All parts of the investment grade curve recorded strong inflows, BAML said.
Short-term funds recorded their third consecutive inflow, slightly lower than the previous week, but still high in asset under management percentage terms. Mid-term investment grade funds saw their seventh week of inflows, while long-term funds had a sixth positive week.
Despite it being August, inflows to high grade funds remained strong and recorded their 22nd week of inflows, according to the research.
The high yield funds segment looped back from negative terrain, seeing a small inflow. Inflows stemmed mainly from global and European funds, while US-focused high yield funds recorded outflows.
The research also showed that since February’s risk asset lows, equity funds have lost $82bn. Meanwhile, emerging market debt funds were boosted by $28bn of inflows during the same period.
Emerging market global debt funds recorded a sixth week of inflows, but the flow strength is subdued due to the summer period, BAML noted. Commodity funds hit a four week record high, it was also their 16th consecutive inflow – the 31st so far in 2016.
Both government bond funds and money market funds recorded their second week of positive inflows. The outflows from European equities funds continued for a 27th consecutive week, but the intensity of the outflows, which peaked in mid-July – has been slowing down over the past four weeks.
