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By Tom Roseen For the first month in three investors were net purchasers of fund assets, injecting $44.8 billion (the largest net inflows since August 2014) into the conventional funds business (excluding ETFs) for October. However, for the fourth consecutive month stock & mixed-asset funds suffered net redemptions, handing back some $5.7 billion for October, while for the first month in five fund investors were net purchasers of fixed income funds, adding $4.3 billion to the macro-group for October. And for the fifth month in six, money market funds witnessed net inflows, taking in $46.3 billion. Despite a weaker-than-expected jobs report at the beginning of October, mixed economic data throughout the month, and a roller-coaster ride of corporate earnings reports, volatility remained below the long-term average of 20. Investors appeared to shrug off a disappointing nonfarm payrolls report that showed the U.S. had added a lower-than-expected 142,000 jobs for September as some investors began to believe the Federal Open Market Committee would not raise interest rates this year. A surprise cut in interest rates by the Peoples Bank of China (PBOC), better-than expected earnings reports from a few heavyweight tech firms, and hints from the European Central Bank (ECB) that further easing might be in the cards pushed stocks to a fourth consecutive week of plus-side performance and sent some investors into risker assets for the month, while others were content to pad the coffers of money market funds in a wait-and-see approach to investing. The Mixed-Asset Funds macro-classification (+$3.4 billion) attracted the strongest net inflows of Lipper’s five equity macro-classifications, while USDE funds experienced the largest outflows (-$8.5 billion). Large-cap funds (-$5.3 billion) suffered the largest monthly net redemptions of the capitalization groupings for the third consecutive month. In contrast, the ETF universe witnessed its ninth consecutive month of net inflows, taking in $28.3 billion for October (its largest net inflows since February 2015). For the second month in a row authorized participants (APs) were net purchasers of equity ETFs-injecting $16.3 billion, and for the fourth month in a row they were net purchasers of bond ETFs-injecting $12.0 billion for October (their largest net inflows since February). In response to the easy-money news from the PBOC and ECB, for the first month in four APs’ appetite for World Equity ETFs topped that for all other types of equity ETFs. The macro-classification witnessed the strongest net inflows (+$6.4 billion) of Lipper’s five equity-related macro-classifications, followed by Sector Equity ETFs (+$5.9 billion), USDE ETFs (+$4.0 billion), and Alternatives ETFs (+$0.1 billion). The Mixed-Asset ETFs macro-classification (-$0.1 billion) suffered the only net outflows for the month. If you’d like to read the entire October 2015 FundFlows Insight Report with all its tables and charts, please click here . Scalper1 News
Scalper1 News