Summary of EPRF Flow Report

The latest EPFR flow report covers the week ending June 17th. The key highlight is large sums continue to exit the money market funds and is being put to work in equities and bond funds. EPFR reported that $55 bln left money market funds in that week, which is the largest it has recorded.

EPFR global-tracked equity funds took in $508 mln. Flows into emerging market funds and global equity funds offset the modest liquidation of US, Japan and European equity funds. Flows into fixed income funds (excluding money market funds) took in $3.1 bln according to EPFR.

It will be interesting to see the next EPFR report as global equity markets have fallen. Most of the BRICs have done worse than the major bourses. In the past five days, Russia's equities have fallen 16.5%, Brazil 3.8%, India almost 6%, while China bucked the trend and advanced about 4.2%. In the same time, the S&P 500 has lost about 2.5%, Germany almost 4%, the UK and Japan have slipped a little more than 2%.

Separately, reports from East Asian equity markets indicate that foreign investors have been net sellers in recent days.
Summary of EPRF Flow Report Summary of EPRF Flow Report Reviewed by magonomics on June 23, 2009 Rating: 5
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