For the week fund flows
showed creations beating redemptions by a factor of 1.49 to 1, per data from ETF.com.
Because the street's conviction remains obscure, we took a look at the fund flows
for an array of leveraged and inverse ETFs offered by Direxion to discover where investors are pooling money.
Outside of the Philippines, factors that triggered the reversal of foreign fund flows
back to emerging markets including the Philippines also remain in play.
Inconclusive IMF talks have extended market uncertainty, but a lack of definitive bearish movement indicates money managers are paying due attention to eventual money inflows from different avenues, Saudi Arabia, China and International Monetary Fund (IMF).The timing of fund flows
is crucial and holds the key to market direction where negative narrative on fund flow
is being countered by positive narrative on eventuality of the same as well as economic benefit of current low oil price.
As manager of the largest funds in the country, it has seen global fund flows
into equities since the start of the year reaching twice that of bonds.
The US economy is witnessing a pick-up in inward fund flows
because of increased banking flows, corporate fund flows
and trade volumes.
Global Banking News-November 7, 2017--OCBC partners ThetaRay to detect suspicious fund flows
While prior researchers have studied the relation of mutual fund flows
with their underlying asset returns (e.g., see Warther, 1995; Edelen and Warner, 2001; Coval and Stafford, 2007; Ben-Rephael et al., 2011), relatively little is known about the relationship between ETF flows and the underlying assets.
Going by similar trends, and assuming the traction in fund flows
happens gradually, our estimates for Saudi Arabia's fund flows
in the initial phases (three to six months after inclusion) is around $6bn to $7bn.
Monthly Product Trends Edition reports that, bolstered by positive net flows moving into active mutual funds ($7.7 billion), total mutual fund flows
($35.6 billion) outpaced ETFs ($33.0 billion) for the first time since February 2016.
We find that sensitivity of fund flows
and fund performance are both related to participants' right to choose their investments in defined contribution plans.