Fund flow data for the week ended 20 May showed that developed market (DM) bond funds witnessed some small inflows despite continued US treasury (UST) volatility.
DM bond funds saw small inflows after two straight weeks of outflows. High-yield (HY) funds also had inflows this past week. US-dedicated HY funds and European HY funds saw small inflows; however, global HY funds (including Asia-dedicated funds) continued to see outflows.
Emerging market (EM) bond funds continued to see small inflows. EM hard currency (HC) bond funds and EM local-currency (LC) funds saw modest inflows this past week.
Retail investors continued to reduce exposure to DM and EM bond funds this week as well, even as institutional funds continued to add to their exposure.
Equity funds had another mixed week.
EM equity funds received inflows and within EM, Asia-ex-Japan funds received inflows, which mainly went to China-domiciled funds and India-domiciled funds, while Korea-domiciled funds saw outflows.
DM equity funds suffered outflows, led mainly by outflows from US funds. European equity funds again started seeing inflows after two weeks of outflows. Japanese funds continued to receive inflows.
