Capital Markets: Observations & Insights

Asset Flows Continue to Chase Income ​ Searching For Yield

• The search for yield is apparent in equity fund flows—equity income funds have seen modest inflows compared to large outflows for equity growth funds

• Investors have poured money into bond funds and redeemed from equity funds

YTD Fund Flows ($m)

YTD Fund Flows ($m)

80,000

10,000

65,205

616

40,000

(10,000)

-

(30,000)

(40,000)

(43,752)

(40,894)

(80,000)

(50,000)

Bonds

Equities

Equity Income

Equity Growth

Source: Morningstar through May 2016. Bonds include taxable & municipal, and equities are the U.S. equity category. Equity income and growth based on prospectus objective.

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