U.S. high-yield funds recorded an outflow of $809 million during the first week of the 2016, following a small inflow of $114 million to close 2015, according to Lipper in the week ended Jan. 6, 2016. It’s a fourth outflow over the past five weeks for a net redemption of $9.2 billion over that span.
The outflow was squarely across funds, at 51% mutual funds and 49% exchange-traded funds. In contrast, last week’s small inflow was technically an outflow of $308 million from mutual funds filled back in with a $422 million inflow to the ETF segment, or inverse 370%.
The trailing-four-week average moderates to negative $1.4 billion per week, from negative $2.1 billion last week and negative $2 billion two weeks ago. Recall that prior to the December outflow streak, the trailing-four-week observation was positive $231 million in mid-November.
The full-year 2015 reading closed deeply in the red, at negative $7.1 billion, with an inverse measurement to ETFs. Indeed, the full-year reading was negative $7.7 billion for mutual funds against positive $686 million for ETFs, for an inverse 10% reading.
Despite this past week’s outflow and noted volatility in the secondary market, the change due to market conditions over the past week was positive, at $411 million, but it’s just barely a gain of 0.25% against total assets, which were $179 billion at the end of the observation period. The prior week measurement was also positive, at $459 million, after three weeks of market-value deterioration.
At present, the ETF segment accounts for $34.3 billion of total assets, or roughly 19% of the sum. — Matt Fuller
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