Global ETP flows of $37.3bn were driven by fixed income with $19.9bn, although equity flows also finished strong as stocks rebounded from a sharp correction attributed to economic growth and low inflation concerns, according to BlackRock.
The fixed income inflows represented an all-time high, including records for US and European exposures, and year-to-date asset gathering of $73.3bn has already broken the annual record of $70.0bn set in 2012.
High yield corporate bond ETPs had the best month of the year with $2.3bn to lead inflows of $7.5bn across all income-oriented categories as interest rates fell further and the search for yield intensified.
EM equity redemptions of ($3.0bn) were impacted by tactical trading in broad funds, but opportunities remain for selective investors currently underweight EM, particularly for Asian economies with attractive valuations and less sensitivity to rates/central bank action.
Japanese equity flows of $0.6bn included $3.2bn in the second half of the month as stocks rallied on expanded Bank of Japan stimulus and news the Government Pension Investment Fund will double its domestic equity allocation to 25%.