U.S. leveraged loan funds recorded an inflow of $1.12 billion in the week ended Nov. 23, according to the Lipper weekly reporters only. That nearly doubles the $673 million from the prior week and marks the largest inflow into the asset class since the week ended Sept. 18, 2013 ($1.33 billion).
Loan funds have been on a tear in the second half of the year. Inflows were recorded in 19 of the last 22 weeks for a total inflow of $5.78 billion during that span. Over the first 26 weeks of 2016 the cumulative outflow was $5.565 billion, with 18 negative weeks against just eight positive readings.
As such, the year-to-date figure swung positive with last week’s result, at $212.5 million, versus a total outflow of $906.2 million as of Nov. 16. That’s based on outflows of $2.7 billion from mutual funds against inflows of $2.9 billion to ETFs, according to Lipper.
ETF flows were 36% of the total last week, but logged their highest ever inflow by volume of $406.2 million. For mutual funds, the $712.4 million was the largest weekly inflow since January 2014.
With this large inflow, the four-week trailing average jumped to positive $471.5 million, from $264.5 million in the week prior.
The change due to market conditions this last week was positive $120.3 million, the largest increase in five weeks. Total assets were $70.56 billion at the end of the observation period. ETFs represent about 17% of the total, at $12.1 billion. — Jon Hemingway
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