Morgan Stanley: Equity Mutual Fund Outflows Returned To 'Elevated Levels'

Thomas Whitehead of Morgan Stanley released a report on Thursday detailing equity mutual fund outflows. "Equity mutual fund outflows return to elevated levels following two weeks near breakeven flows," Whitehead wrote. "Large-cap US equity funds drove the majority of domestic equity mutual fund outflows (mid-caps & small-caps remain slightly negative), while int'l equity inflows (developed market-driven) provided a slight offset." Bond mutual fund inflows "strengthened" for the second straight week as high yield and intermediate bond inflows also strengthened, offsetting a slight slowdown in total return inflows, according to Whitehead. Exchange Traded Fund (ETF) inflows also "strengthened" from last week as a "sizable and improving" U.S. equity ETF inflows offset weaker U.S. bond ETF inflows. At the same time, international equity and bond ETFs remained "slightly positive."