Fund flow data for the week ended 25 March showed lackluster flows after the FOMC meeting, according to Standard Chartered research notes.

  • Institutional investors continue to drive flows across asset classes as retail investors remain sidelined. 
  • European risk assets, both equity and high-yield (HY) funds, remained the bright spots, receiving consistent inflows as quantitative easing continued to support risk sentiment in the region. 
  • Flows into US risk assets were mixed, with US equity funds witnessing large outflows from both institutional and retail investors, while US HY funds received moderate inflows from institutional investors. 
  • Developed-market (DM) bond funds received modest inflows during the week, driven primarily by institutional accounts. 
  • Emerging-market (EM) bond funds saw very small inflows; investors maintained their preference for hard-currency (HC) over local-currency (LC) funds, though the picture may change in the coming weeks with the recent post-FOMC weakness in the USD. 
  • Outflows from EM bond funds were driven largely by retail investors.
  • EM equity funds continued to see outflows in the week ended 25 March.
  • AXJ-domiciled funds also witnessed outflows, led by China-domiciled funds.

The material has been provided by InstaForex Company –