Mutual Funds And Equity ETFs Continue to See Large Inflows


A new Goldman Sachs Group, Inc. (NYSE:GS) report on America’s fund inflows was released today, dealing with flows in the last week. The report finds that Mutual Funds are seeing an uptick, with a clear trend in long term inflows into long term mutual fund products, and a turn around in equity tracking ETF’s.

The charts above show the long term trends in mutual funds flows. The first, on the right, deals with the Assets Under Management from year to year in long dated Mutual Funds. This week, $1.1 billion flowed into long term mutuals, adding to last week’s inflows of $1.6 billion. The second chart shows net inflows on a bi-weekly basis over the last eighteen months. The movements in 2013 are substantial.

Flows into mutual funds dealing with equity outside of the United States say inflows of $683 million this week and $1.1 billion last week. Bond funds saw inflows of $2.4 billion this week, and $1.8 billion last week. Investors are turning away from money market funds, with $27.5 billion flowing out of such funds this week alone.

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For the second quarter to date, money market funds have seen net outflows of $33.7 billion. Bond funds have seen inflows of $10.1 billion in the same period, while equity fund inflows totaled $4 billion. The net difference is going elsewhere, and it turns out a substantial amount is being invested in equity ETF’s.

The above charts show, from left to right, the annual net inflows into equity ETF’s and ETF equity fund flows on a biweekly basis over the last eighteen months. Though the flows are erratic, it is clear that over time net inflows are greater than outflows. Right now we’re in another period of expansion in the industry.

This week $1.5 billion flowed into equity ETF’s, more than accounting for last week’s outflows of $1.2 billion. Commodity ETF’s gained just 87 million this week, compared to last week’s $552 million. Bond ETF’s are also in a period of expansion, with $1.9 billion in this week, adding to a gain of $2.1 billion last week.

Next week sees many of the world’s most important money managers announce their results for the first quarter of 2013. Janus Capital Group Inc (NYSE:JNS), Pzena Investment Management, Inc. (NYSE:PZN), and Waddell & Reed Financial, Inc. (NYSE:WDR) all report on Tuesday, while KKR & Co. L.P. (NYSE:KKR) and Federated Investors Inc (NYSE:FII) report on Thursday.

The Goldman Sachs Group, Inc. (NYSE:GS) analysts do not think that earnings will cause big movements in the stock this time around, as equity prices seem to already reflect the expectations of the market on earnings.

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