December Fund Flow Depicts Rotation From Bonds To Equities

December fund flow trends show equity funds continuing to gather assets at the expense of fixed income.

David J. Chiaverni and Richard Fellinger of BMO Capital Markets observe in their recent research report that investors contributed $27 billion to long-term mutual funds and ETF in December.

Fund flow: rotation from bonds to equities

As can be deduced from the following table, December fund flows for U.S.-registered mutual funds were a net +$4.5 billion, below the six-month average of $10 billion. However it was above the year-ago period of -$4 billion. While equity fund flows remained strong in December, fixed income funds remained in redemptions for the seventh consecutive month.

The...