Retail-cash inflows to high-yield bond funds were $890 million in the week ended Nov. 12, according to Lipper. This is a fourth consecutive net inflow to the asset class, for an infusion of $6.6 billion over that span.
Moreover, the inflow is light on the exchanged-traded front in a third consecutive week, at just approximately 10% of the inflow, or $93 million this past week. The prior two weeks were just 6% of the inflows, but it was ETF-heavy three weeks ago, at roughly half of the $1.7 billion inflow in the week ended Oct. 22.
With a fourth large inflow, the trailing-four-week average builds to positive $1.7 billion per week, from positive $1.3 billion last week and negative $254 million just four weeks ago.
The full-year reading rises to $1.1 billion, with 11% tied to ETF inflows. Recall that the figure flipped back into positive territory last week for the first time since the record-shattering outflow of $7.1 billion in the week ended Aug. 6.
One year ago at this time flows were positive $1.57 billion, and 98% was ETF-related, or $1.54 billion of the total.
Despite the solid inflow this week, change due to market conditions was negative $40 million, but that’s essentially nil against total assets, which stood at $182.7 billion at the end of the observation period, with 20% tied to ETFs, or $36.9 billion. Recall that a surge in market value by $3.3 billion three weeks ago was the largest upside move in three years.
Total assets are up $6.9 billion in the year to date, reflecting a gain of roughly 4% in 2014. – Matt Fuller