20160328-三星证券-Flow_into_EMs_strengthens_12页_1mb

Fund Flow Weekly Summary

Core Content Overview

This document provides an analysis of fund flows for the week of March 17–23, 2016, focusing on both global and domestic equity and bond funds. It highlights the net inflows and outflows across different regions and investor types, including foreign and domestic investors.

Key Findings

Equity Fund Flows

• Global equity-type funds saw a net outflow of USD1.09 billion for the week, marking the first net outflow in two weeks.
• Developed Markets (DMs) experienced a net outflow of USD3.98 billion, with North America and Western Europe leading the outflows.
  • North America: USD3.33 billion outflow
  • Western Europe: USD1.63 billion outflow
• Emerging Markets (EMs) saw net inflows of USD2.89 billion, with Asia ex Japan and GEM (Global Emerging Markets) showing positive flows.
  • Asia ex Japan: USD455 million inflow
  • GEM: USD2.1 billion inflow
  • Asia Pacific: USD47 million inflow, though Korea and Taiwan saw outflows.
• China was the top inflow destination in Asia ex Japan, with USD807 million.
• Domestic equity funds had a net outflow of KRW1.4 trillion, with local ITCs net selling KRW1.12 trillion and foreign investors net buying KRW3.79 trillion via program non-arbitrage trading.

Bond Fund Flows

• Global bond-type funds saw a net inflow of USD5.88 billion, with DMs and EMs both showing inflows.
  • DMs: USD4.47 billion inflow
  • EMs: USD1.41 billion inflow
• North America had the largest inflow among DMs, with USD1.95 billion.
• Western Europe and Asia Pacific also had inflows, while Asia ex Japan had a small net inflow.
• Global bond funds had a net inflow of USD781 million, and Asia Pacific had a net outflow of USD39 million.

Foreign Net Flows into Asia

• Foreign investors showed a net inflow of USD816 million into India last week.
• Korea had net outflows in the past weeks, with KRW1.12 trillion net sold over three months.
• Foreign net flows into China were USD807 million, and Indonesia and Philippines also had positive inflows.
• Thailand and Vietnam showed mixed results, with some weeks of inflow and others of outflow.

Domestic Fund Flows

• Domestic equity funds continued to see net outflows, with Kospi rising.
• Non-ETFs experienced strong outflows, while ETFs saw moderate inflows.
• Local institutional investors had net inflows, with Samsung Engineering and Hyundai E&C being the top stocks bought by local institutions.

Key Trends

• Risk appetite remains strong in EMs, with solid inflows despite a slowing pace as global policy momentum is already reflected.
• Foreign investors are increasingly allocating capital to global EM funds, driven by basket orders and program trading.
• Korea experienced mixed flows, with foreign investors net buying KRW3.79 trillion while domestic ITCs net sold KRW1.12 trillion.
• Domestic equity funds are under pressure due to rising local market values, and local institutional investors are profit-taking in some cases.
• Top stocks in MSCI Korea and Kospi 200 were heavily net bought by both foreign and local institutional investors, particularly Hyundai Motor, LG Display, and Samsung SDI.

Summary Table

Conclusion

The report highlights a shift in fund flows from developed markets to emerging markets, particularly in Asia ex Japan and GEM. While foreign investors are showing increased interest in EMs, domestic investors and local ITCs are net sellers, contributing to net outflows in Korea. The top stocks in Korea are being net bought by both foreign and local institutional investors, indicating positive sentiment towards major Korean companies.