Cash outflows from bank loan funds moderated to $428 million during the week ended Oct. 29, from a $1.7 billion outflow in the previous week, according to Lipper. The latest reading represents a 16th consecutive weekly withdrawal and the 27th outflow in the past 29 weeks, for a net redemption of $17.1 billion over that span.
The current reading reflects mutual fund outflows of $418 million, plus a $10 million outflow from exchange-traded funds. The influence of ETFs had been running a bit hotter, at 6% of the outflow last week and 8% the week prior.
The trailing-four-week average is negative $964 million, versus negative $1.2 billion last week. Recall that last week’s observation was the third largest outflow on record and the highest since $1.3 billion in the week ended Aug. 31, 2011.
The year-to-date fund-flow reading pushes deeper into negative territory, at roughly $10.1 billion, and it’s essentially all mutual funds, with ETFs technically positive $23 million for the year. In the comparable year-ago period, inflows totaled $47.3 billion, with 11% tied to ETFs, or $5.1 billion.
The change due to market conditions was positive $217 million, versus total assets of $96.7 billion at the end of the observation period, for roughly a 0.2% gain. The ETF segment comprises $7.4 billion of the total, or approximately 8%. – Matt Fuller