Investment Company Institute: Funds are Pouring Money into Bonds
Inflows into bond funds hit the highest level in seven years.
The Investment Company Institute cited the largest outflows of capital from mutual funds and ETFs since September. During the first full week of 2020, fund investors pulled $13.1 billion out of the vehicles.
Investment Company Institute Data
The Investment Company Institute said that roughly $24.7 billion shifted into funds that hold taxable and municipal debt. That was the largest weekly inflow into bonds since 2013.
The outflows weren’t surprising given the performance of the S&P 500. The index finished the year up roughly 30%. A lot of investors are starting to worry that the markets are moving into the over-valued territory. The S&P 500 is already up 2% during the first two weeks of the year.
Markets did hit a new record Wednesday, despite news of the outflows. Investors have been increasingly optimistic about the U.S.-China trade deal, the de-escalation with Iran, and the uptick in stimulus efforts around the globe.
ICI said that investors are becoming increasingly positive about foreign markets. Last week, net inflows into global stock funds totaled $260 million. That figure was actually the smallest total for these foreign inflows over the last month.
The outflows are a pittance compared to the global stock and bond markets. ICI says that the global stock and bond universe now sits at $190 trillion.
Latest Alternative Investment News
Carbon emissions dominated the headlines this week. The European Commission has announced an ambitious plan to shift toward a green economy and make the EU carbon-neutral in the year ahead….
Kirkoswald Asset Management will stop accepting new investors when the fund hits nearly $2 billion. Reuters reports that the two-year-old fund will close itself to new investors at the end…
Fundbox, the fintech startup that finances SMEs, is planning a potential IPO. Fundbox has appointed Marten Abrahamsen as its CFO effective this January. Abrahamsen was previously a partner at The…
Such is the power of Kyle Bass, the hedge fund manager who correctly predicted the crisis from US subprime mortgages in 2007. The Hong Kong Monetary Authority deemed it appropriate…