Sun, Dec 4, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Investors pile into equity funds at fastest rate since 2000

Tuesday, October 29, 2013
Opalesque Industry Update - TrimTabs Investment Research reported today that all equity mutual funds and exchange-traded funds have received a net $45.5 billion in October through Friday, October 25. This month’s inflow is the fifth-highest in any month on record.

“As Silicon Valley bestows multi-billion dollar valuations on technology outfits with neither revenue nor profits, investors are piling into equity funds at the fastest rate since the technology stock bubble popped in 2000,” said David Santschi, Chief Executive Officer of TrimTabs. “This year’s inflow of $277 billion into all equity funds is the biggest since the inflow of $324 billion in all of 2000.”

In a research note, TrimTabs explained that three of the ten largest monthly inflows into equity funds have occurred this year. The inflows of $66.3 billion in January and $55.3 billion in July were the biggest monthly inflows on record.

“All but three of the ten largest monthly inflows into equity funds occurred in 2000 or 2013,” said Santschi. “Such strong enthusiasm among fund investors should make contrarians nervous.”

TrimTabs also reported that bond funds have posted redemptions for the fifth consecutive month. Bond mutual funds and exchange-traded funds have redeemed $17.8 billion in October, lifting the total outflow in the past five months to $140.6 billion.

“These outflows mark a huge shift for the fixed-income world,” said Santschi. “Not since late 2003 have bond funds posted five monthly outflows in a row.”

TrimTabs

Press Release

BM

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. M&A - AllianzGI to acquire Sound Harbor Partners, SS&C completes acquisition of Wells Fargo's Global Fund Services business[more]

    AllianzGI to acquire Sound Harbor Partners Allianz Global Investors (AllianzGI), an active investment manager, announced that Sound Harbor Partners, a US private credit manager led by Michael Zupon and Dean Criares, have agreed to join its fast-growing Private Debt Platform. Under the te

  2. Europe - UK investors to pay more tax on money in offshore funds, Do you want to hand your money to super-algo or a Swiss banker?[more]

    UK investors to pay more tax on money in offshore funds From FT.com: Hedge funds in Dublin and Luxembourg are set to be hit by new rules that will force UK investors to pay more tax on the money they hold in offshore funds. As part of the government’s Autumn Statement on the country’s fi

  3. Hunt for yield pushes more investors into riskier assets[more]

    From FT.com: Pension funds and insurance companies have increasingly embraced riskier assets in their hunt for higher returns over the past five years. Alternative assets such as property, infrastructure, private equity and hedge funds have been bought up by institutional investors in a world where

  4. People - Nectar Financial hires senior investment team, Texas A&M replaces retiring foundation investment chief, Ex-Cadwalader partner Woolery makes another sudden exit, How to become a Python coder at a top hedge fund, by the co-CTO of Man AHL[more]

    Nectar Financial hires senior investment team Nectar Financial AG, a Swiss financial technology company for wealth and asset management, has announced that it has hired two key senior leaders to spearhead its digital asset management efforts. The company also announced that it has entere

  5. Activist News - Cognizant has introductory discussion with activist investor Elliott; to review letter, Starboard Value makes huge investment in Hewlett Packard, Hedge fund calls for removal of First NBC Bank CEO[more]

    Cognizant has introductory discussion with activist investor Elliott; to review letter From Indiatimes.com: Cognizant said it had an introductory discussion with Elliott Management after receiving the activist hedge fund's letter asking for a board shakeup, a buyback, a dividend and chan