High yield bond funds
, by contrast, suffered substantial outflows during 2017 and in all but one month year-to-date.
High yield bond funds
had positive inflows for the past 9 out of 10 weeks, and investment grade bonds funds saw positive inflows for the past 26 out of 27 weeks.
With recent publicity around some high yield bond funds
suffering large investor outflows, and, for example, Third Avenue Management looking to block investors from withdrawing money from a nearly $1 billion junk bond fund that it is trying to liquidate, A.M.
Data from EPFR Global showed in the week ending May 23, emerging markets equity, commodities and energy sector funds and Europe equity funds all saw redemptions in excess of $1 billion, while high yield bond funds
had their biggest outflows in over nine months.
EPFR Global-tracked High Yield Bond Funds
posted their biggest weekly inflow on record while the geographically diversified Global Emerging Market Equity Funds enjoyed their best week since early May and Emerging Markets Bond Funds snapped their four week, $5.6 billion outflow streak.
"But, as has been the case for the past three months, the latest flow data contained some bullish signals," citing new money in high yield bond funds
and outperforming U.S.
The correlations between net flows and market returns range from 12 percent for government bond funds to 72 percent for high yield bond funds
. In most cases, these correlations can be attributed almost entirely to the unexpected component of net flows.
Global investors sought high yields again last week, with EPFR Global-tracked High Yield Bond Funds
seeing year-to-date inflows nearing almost three times that of the full year total for 2011 last week.
Expectations that the US Federal Reserve will unveil another quantitative easing program later this month helped EPFR Global-tracked high yield bond funds
snap a five week, $10.8 billion outflow streak during a week that saw actively managed US large cap growth equity funds post their biggest inflow since mid-4Q07.
Redemptions from most EPFR Global-tracked fund groups soared, with High Yield Bond Funds
hit particularly hard, as investors liquidated positions and parked their cash in Money Market Funds.
But underlying appetite for risk persisted, with emerging market local currency and high yield bond funds
enjoying solid weeks, EPFR noted.
High Yield Bond Funds
, including funds investing mainly in US and European issues, posted their second largest weekly outflow on record as investors withdrew $2.09 billion from these funds.