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Brutal week for fund flows conjures memories of 2008

Monday, August 15, 2011
Opalesque Industry Update - An imperfect storm of downgrades, rumors, lackluster macroeconomic data and the ongoing Eurozone debt crisis transformed a retreat by investors into something approaching a stampede during the week ending August 10. Redemptions from most EPFR Global-tracked fund groups soared, with High Yield Bond Funds hit particularly hard, as investors liquidated positions and parked their cash in Money Market Funds.

While Money Market Funds rebounding from the previous week’s record setting outflows with their highest ever inflow, High Yield Bond and Floating Rate Funds suffered their biggest weekly outflows since EPFR Global started tracking them in 2Q05 and 1Q07 respectively. Redemptions from Emerging Markets Equity Funds, Global Equity Funds and Bond and Balanced Funds hit levels last seen in 2008. Real Estate Sector Funds had their worst week in nearly four years and outflows from US Equity Funds jumped to a 63 week high. Source

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