J.P. Morgan’s weekly analysis of European high-yield funds shows a €101 million inflow for the week ended Aug. 1. The reading for the week ended July 25 was revised to an outflow of €2 million, from an outflow of €15 million. The provisional reading for June is an outflow of €346 million, and the 2012 total through June is a €528 million inflow.
The latest weekly inflow comes as financial markets staged a comeback on Friday, with markets boosted by stronger-than-expected non-farm payroll numbers from the U.S. The iTraxx Crossover tightened by nearly 50 bps, moving below the 600-mark for the first time since the end of March.
Meanwhile, the U.S. market continues to be active. Lipper FMI data show a $479 million inflow for the week ended Aug. 1, which follows an impressive $1.65 billion inflow the week prior, according to market sources. Of the $479 million, only $257 million was attributable to mutual funds, with the rest being ETF-driven. In the year through to Aug. 1, $19.9 billion has flowed into high-yield funds, sources said.
As reported, J.P. Morgan only calculates flows for funds that publish daily or weekly updates of their net asset value and total fund assets. As a result, J.P. Morgan’s weekly analysis looks at around 50 funds, with total assets under management of €12 billion. Its monthly analysis takes in a larger universe of 70 funds, with €32 billion of assets under management. For a full analysis, please see “Europe receives HY fund flow calculation.” – Sohko Fujimoto