Fund flows step back from the precipice
Following the worst quarter since the global financial crisis, mutual fund net flows pulled back to near even in the first three weeks of April. Equity and bond funds lost a net combined $301.8 billion during March. In the weeks following, however, those outflows subsided.
Quarterly rebalancing likely drove equity inflows in the opening week of the second quarter as investors sold bond funds in favor of equities. Investment-grade net flows were negative over the first half of the month while high-yield funds drew positive investor attention.
Equity fund outflows stemmed a bit, but investor confidence appeared muted in April's recovery. Emerging market funds' $2.3 billion in outflows was its worst period since the month of December 2018.