Great Graphic: Climactic Activity?

This Great Graphic was posted in the Financial Times at the end of last week.  It is based on EPFR flow data that Bank of America Merrill Lynch distributed.  It shows a record $5.7 bln outflow from European equity mutual funds and ETFs in the week ending October 15.

The Financial Times report noted that:  "The larger US market recorded an $8.1bn outflow in the same week."  However, Reuters cited the same report to note that "U.S.-focused stock funds attracted $8.1 billion, with inflows into exchange-traded funds accounting for all of the new cash while U.S.-focused stock mutual funds posted $3.2 billion in outflows." Confused ?  We are.  However, the table at the bottom of the Financial Times article seemed to support Reuters reporting.  It shows small net inflow into US equities.  

On other points the two reports concur.  There has been continued outflow of funds from high yield bond funds (seven weeks), floating rate notes (14 weeks) and Treasury Inflation Protected Securities (six weeks).   Investment grade corporate bonds have seen inflows for 43 weeks ($5.6 bln in the latest week) and Treasuries ($3.9 bln), which was the largest in 10 weeks.  

Emerging market equity funds reported a net outflow of $2.3bln in the week ending October 15.  It was the second consecutive weekly outflow.  Year-to-date, emerging market equities have experienced an outflow of $5.8 bln, and a little bit more than a third can be accounted for by flows out of Chinese equity funds.  

(Sporadic updates continue during my extended business trip to Asia)