Citi Depositary Receipt Services 2016 Midyear Report

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11 Citi Depositary Receipt Services
International Investing Trends
Through May 2016, hybrid funds, which can invest in both
equity and fixed income securities, had an estimated net
outflow of $10.0 billion while bond funds had an estimated
net inflow of $49.2 billion. Compared to the same period in
the prior year, bond funds net inflows were up $3.5 billion
driven by a flight to quality by investors.
Equity Fund Flows1
In USD Billions
Domestic Equity World Equity
-80
-60
-40
-20
0
20
40
60
80
YTD
May
2016
YTD
May
2015
YTD
May
2014
YTD
May
2013
YTD
May
2012
YTD
May
2011
YTD
May
2010
26.9 -14.0
26.9
22.0
-46.7
10.7
57.7 48.5
63.4
-36.9
15.1
7.4
24.9 16.3
-64.1
Source: ICI
Year-over-Year Flows to Long-Term Mutual Funds
In USD Billions
YTD
May 2015
YTD
May 2016
Increase/
(Decrease)2
YoY
Total Equity $21.7 ($47.8) ($69.5)
Domestic ($36.7) ($64.1) ($27.4)
World $58.4 $16.3 ($42.1)
Hybrid $11.1 ($10.1) ($21.1)
Total Bond $45.7 $49.2 $3.5
Taxable $37.2 $22.0 ($15.2)
Municipal $8.5 $27.2 $18.8
Total $78.4 ($8.6) ($87.1)
According to the U.S. Federal Reserve, U.S. investment in
non-U.S. equities as of Q1 2016 was $6.7 trillion, down 5.6%
from the Q1 2015 level of $7.1 trillion. Net outflows of $385
billion accounted for most of the decrease. On a quarterly
basis, U.S. investment in non-U.S. equities in Q1 2016 was flat
versus the Q4 2015 level of $6.7 trillion.
Long-Term Mutual Fund Flows1
In USD Billions
-30
-20
-10
0
10
20
30
Total Bond Hybrid Total Equity
May-16 April-16 March-16 February-16 January-16
-5.0
1.1 21.4
19.0
12.9
-10.6
-5.2
-1.5 -9.9
-23.7
-1.4
8.8
3.2 0.3
-18.1
Source: ICI
Through May 2016, long-term mutual funds witnessed
estimated net outflows of $8.6 billion compared to net inflows
of $78.4 billion in the same period in the prior year. The
decrease was primarily led by net outflows of $47.8 billion from
equity funds and $10.0 billion from hybrid funds, which was
partially offset by net inflows of $49.2 billion into bond funds.
Most of the overall equity outflow was driven by a net outflow
of $64.1 billion from domestic equity funds, which was partially
offset by a net inflow of $16.3 billion into world equity funds.
1 Data as of May 2016.
2Differences may not sum to total due to rounding.
Source: ICI