Global funds continue to see net inflows, while US long-term bond funds shift to slight net outflows after consecutive weeks of support
AI summary card
Global funds continue to see net inflows, while US long-term bond funds shift to slight net outflows after consecutive weeks of support
In the week ended August 26, both equity and fixed-income funds recorded positive inflows, but net equity inflows fell from approximately USD 40 billion in the previous week to approximately USD 9 billion. Fixed-income demand remained broad-based, although US long-term bond funds saw slight net outflows.
- Global equity funds recorded weekly net inflows of USD 9,243 million, down from approximately USD 40 billion in the previous week.
- Global fixed-income funds recorded weekly net inflows of USD 18,843 million, with inflows spanning multiple bond-fund categories.
- Short-duration and inflation-protected bond funds continued to receive net inflows.
- US long-term bond funds posted slight net outflows after receiving support in previous weeks.
- Both emerging-market hard-currency and local-currency bond funds recorded net inflows.
- Money-market fund assets increased by approximately USD 9 billion.
- The US dollar, renminbi, and euro attracted the strongest net cross-border demand.
Report interpretation
Overview
The report tracks global equity, fixed-income, money-market, and cross-border foreign-exchange flows for the week ended August 26. Overall flows remained positive, but the internal composition diverged: equity inflows slowed significantly, fixed-income inflows remained relatively steady, and US long-term bond funds shifted from sustained support in previous weeks to slight outflows.
Core views
Flows into global mutual funds and related investment products remained positive overall, with both equities and fixed income receiving net inflows. According to the table, global equity funds recorded weekly net inflows of USD 9,243 million, while global fixed-income funds received USD 18,843 million, indicating that fixed income attracted stronger flows than equities during the week. For equities, global equity funds recorded net inflows of approximately USD 9 billion in the week ended August 26, a marked slowdown from approximately USD 40 billion in the previous week. The table gives a more precise weekly inflow of USD 9,243 million and cumulative inflows of USD 98,299 million over the past four weeks. Weekly flows equaled 0.03% of assets under management, versus a four-week average of 0.08%. Within developed markets, US funds drove net outflows, while Japanese funds recorded net inflows. Emerging-market funds saw net inflows overall, led primarily by global emerging-market benchmark funds, although Korean funds posted net outflows. At the sector level, technology funds received the largest net inflows, while financial funds experienced the largest net outflows, showing that positive equity flows were not evenly distributed. For fixed income, inflows into global bond funds were supported across different fund categories. Weekly net inflows totaled USD 18,843 million, with cumulative inflows of USD 87,796 million over the past four weeks. Weekly flows equaled 0.19% of assets under management, versus a four-week average of 0.22%. Short-duration bond funds and inflation-protected bond funds continued to attract capital, while the report's focus, US long-term bond funds, shifted to slight net outflows after maintaining inflows in previous weeks. The report defines long-term bonds as long-term aggregate, long-term corporate bond, and long-term government bond funds; short-duration bonds include the corresponding short-term aggregate, short-term corporate bond, and short-term government bond funds. Emerging-market fixed income continued to see positive inflows, with both hard-currency and local-currency bond funds recording net inflows. Emerging-market funds within the fixed-income category posted weekly net inflows of USD 3,001 million and cumulative inflows of USD 7,776 million over the past four weeks. Weekly flows equaled 0.41% of assets under management, above the four-week average of 0.26%, reflecting stronger inflow intensity during the week. Money-market fund assets increased by approximately USD 9 billion. The table shows weekly inflows of USD 9,198 million and cumulative inflows of USD 87,086 million over the past four weeks, corresponding to weekly flows/AUM of 0.08% and a four-week average of 0.19%. Cross-border foreign-exchange flows were also broadly positive, with the US dollar, renminbi, and euro attracting the strongest net demand. The table shows weekly cross-border foreign-exchange flows of USD 18,002 million and cumulative flows of USD 96,980 million over the past four weeks. Weekly flows/AUM were 0.11%, versus a four-week average of 0.15%. This measure assesses cross-border equity and fixed-income flows based on the domicile of the underlying funds and excludes emerging-market hard-currency bond funds and foreign-exchange-hedged products, thereby reflecting the currency demand implied by unhedged cross-border fund flows.
Analysis framework
The report first aggregates weekly global fund flows and their share of assets under management, then separately breaks down equity, fixed-income, money-market, and foreign-exchange flows. The equity section is segmented by developed markets, emerging markets, countries, and sectors; the fixed-income section is segmented by duration, inflation-protection characteristics, and emerging-market bond currency; finally, unhedged cross-border flows based on fund domicile are used to assess currency demand.
Methodology notes
Global Fund Flow Tracking
The report uses net subscriptions and redemptions in mutual funds and related products to assess capital preferences across assets, regions, and sectors. It presents both absolute flows and flows as a percentage of assets under management to facilitate comparisons of inflow intensity across fund categories.
Grouping by Duration and Bond-Fund Type
The report categorizes bond funds into long-term, short-term, inflation-protected, emerging-market hard-currency, and emerging-market local-currency funds to identify which maturities and product types are driving fixed-income inflows, rather than calculating bond-price duration or convexity.
Fund-Domicile-Based Cross-Border Foreign-Exchange Flow Measure
The report measures cross-border equity and fixed-income flows based on the domicile of the underlying funds and excludes emerging-market hard-currency bond funds and foreign-exchange-hedged products, using this approach to assess the net currency demand implied by unhedged fund flows.
Asset mapping & comparison
Structured mapping from thesis to named assets (strengths, weaknesses, peers, risks).
- Global Equity FundsNet inflows continued during the week, but the volume of inflows declined significantly from the previous week.
- Strengths
- Japanese funds, global emerging-market benchmark funds, and technology funds recorded relatively strong net inflows.
- Weaknesses
- US funds, Korean funds, and financial-sector funds posted net outflows.
- Comparison
- Weekly net inflows were USD 9,243 million, below the USD 18,843 million recorded by fixed-income funds.
- Global Fixed-Income FundsMultiple fund categories contributed to inflows, providing relatively steady overall support.
- Strengths
- Short-duration, inflation-protected, emerging-market hard-currency, and emerging-market local-currency bond funds all received net inflows.
- Weaknesses
- US long-term bond funds posted slight net outflows after receiving support in previous weeks.
- Comparison
- Weekly net inflows were USD 18,843 million, above the USD 9,243 million recorded by global equity funds.
- Money-Market FundsFund assets increased by approximately USD 9 billion during the week.
- Strengths
- Weekly inflows totaled USD 9,198 million, with cumulative inflows of USD 87,086 million over the past four weeks.
- Comparison
- Weekly flows/AUM were 0.08%, below the four-week average of 0.19%.
- Cross-Border Foreign-Exchange FlowsUnhedged cross-border fund flows were positive overall, reflecting positive currency demand.
- Strengths
- The US dollar, renminbi, and euro attracted the strongest net demand.
- Comparison
- Weekly flows totaled USD 18,002 million, with cumulative flows of USD 96,980 million over the past four weeks.
Key data
- Global Equity Fund FlowsWeekly +USD 9,243 million; four-week cumulative +USD 98,299 millionApproximately +USD 9 billion for the week, down from approximately +USD 40 billion in the previous week; weekly flows/AUM were 0.03%, versus a four-week average of 0.08%.
- Global Fixed-Income Fund FlowsWeekly +USD 18,843 million; four-week cumulative +USD 87,796 millionWeekly flows/AUM were 0.19%, versus a four-week average of 0.22%, with multiple bond-fund categories contributing to inflows.
- Emerging-Market Fixed-Income Fund FlowsWeekly +USD 3,001 million; four-week cumulative +USD 7,776 millionWeekly flows/AUM were 0.41%, above the four-week average of 0.26%.
- Money-Market Fund FlowsWeekly +USD 9,198 million; four-week cumulative +USD 87,086 millionThe main text rounds this to an asset increase of approximately USD 9 billion; weekly flows/AUM were 0.08%, versus a four-week average of 0.19%.
- Cross-Border Foreign-Exchange FlowsWeekly +USD 18,002 million; four-week cumulative +USD 96,980 millionWeekly flows/AUM were 0.11%, versus a four-week average of 0.15%; the US dollar, renminbi, and euro attracted the strongest net demand.
Impact & implications
The flow structure presented in the report indicates that global fund demand remains positive, but preferences are not uniform. Fixed-income inflows are steadier than equity inflows, with bond capital favoring short-duration, inflation-protected, and emerging-market products, while the consecutive inflows into US long-term bonds have temporarily been interrupted. Equity funds continue to record net inflows, but the pace has slowed significantly, with flows tilting toward Japan, global emerging-market benchmark funds, and technology funds across regions and sectors.
What to watch
- Monitor whether the slight net outflows from US long-term bond funds, following several consecutive weeks of support, persist.