Cash outflows from bank loan funds diminished significantly in the first 2015 full-week reading, at $374 million for the week ended Jan. 7, according to Lipper. That’s down from $1 billion last week, $1.3 billion two weeks ago, and a whopping $1.8 billion in the week ended Dec. 17, 2014.
Just like last week, the influence from exchange-traded funds was essentially nil, at just 1% of the redemption, or $2.3 million over the past week. Recall that ETFs were heavy, at 18% of the big withdrawal three weeks ago, and that was anomalous to most every other reading during the year.
The latest outflow represents the 26th consecutive weekly withdrawal and the 37th outflow in 39 weeks, for a net redemption of $24.6 billion over that span.
The trailing four-week average moderates to negative $1.1 billion for the week, from negative $1.3 billion last week and negative $1.2 billion two weeks ago. Last week’s observation was the deepest in roughly 3.5 years, or since the week ended Aug. 31, 2011.
The outflow kicking off the New Year is in contrast to last year, which showed a net inflow of $1 billion during the first week of the year. For the full-year 2014, outflows were roughly $17.3 billion, with ETFs representing about 3% of that total, or $516 million.
In today’s report, the change due to market conditions was negative $272 million, for a 0.3% decline against total assets, which were $88.3 billion at the end of the observation period. The ETF segment comprises $6.8 billion of the total, or approximately 8%. – Matt Fuller