Lipper Research

Most Recent Research

Report Type / Publish DateReport Name
Jul 19, 2015

Investors Remain Enamored of World Equity Funds in June

For the second month in a row mutual fund investors injected net new money into the conventional funds business (+$8.9 billion). Money market funds (+$8.7 billion) experienced net inflows for the second consecutive month. Investors continued to pad the coffers of stock & mixed-asset funds (+$7.7 billion for June), but they became skittish about bond funds for the first month in six, redeeming $7.5 billion. The World Equity Funds macro-classification (+$13.3 billion) took in the largest monthly net inflows of Lipper's five equity macro-classifications.For the fifth consecutive month authorized participants (APs) were net purchasers of exchange-traded fund (ETF) assets (+$17.6 billion), injecting $19.7 billion net into stock & mixed-asset ETFs, while withdrawing a net $2.1 billion from bond ETFs. APs remained focused on World Equity ETFs, injecting a net $9.6 billion into the macro-classification for June.
Jul 06, 2015

Greek Debt: Comedy and Tragedy in Many Acts

Given a scenario in which Greece steps closer to a euro exit, Puerto Rico’s governor announces that his island cannot possibly pay its debt, and stocks in one very large country (China) violently spiral lower, one might have thought Treasuries would rally out of all of that chaos. Instead, Treasury activity implied that each of those events would have a limited effect on global wealth, at least for the time being. China, for example, has seen the Shanghai Composite rise almost 60% this year (despite lackluster fundamentals), so the recent selloff is not all that surprising. No, Treasury-related funds suffered through a disappointing quarter because investors believe the Federal Reserve is getting closer to raising the Fed funds rate in September. Leading up to quarter-end, William Dudley (president of the Federal Reserve Bank of New York),said recent wage gains and growing household spending had assuaged some of his concerns about America’s jobs market. Other governors voiced similar support for a possible rate hike before year-end, although no one sounded completely sure it would be done.
Jul 05, 2015

The Month in Closed-End Funds: June 2015

For the second consecutive month both equity and fixed income closed-end funds (CEFs) suffered negative returns, with equity funds losing on average 2.84% on a net-asset-value (NAV) basis, while their fixed income counterparts lost 0.74% on average.  For June only 5% of all CEFs traded at a premium to their NAV, with 7% of equity funds and 4% of fixed income funds trading in premium territory. Lipper's World Equity CEFs macro-classification witnessed the smallest widening of discounts for the month—19 basis points (bps) to 11.61%. For the third consecutive month all of Lipper's municipal bond CEF classifications posted returns in the red, with Intermediate Municipal Debt CEFs (-0.22%) mitigating losses better than the other classifications in the muni group. Despite the Greek debt drama, world equity CEFs (-2.04%) mitigated losses better than their mixed-asset CEFs (-2.11%) and domestic equity CEFs (-3.41%) brethren. Growth CEFs (+0.68%) posted the only positive return in the equity universe for the month, while Energy MLP CEFs (-8.85%) was at the bottom.
Jul 01, 2015

Equity Funds Just Manage to Post Plus-Side Returns for Q2 2015

• For Q2 2015 equity funds (+0.09% on average) posted their third consecutive quarterly gain. World Equity Funds (+1.22%) was at the head of the class for the second quarter in a row, outpacing Lipper's other three broad equity macro-classifications: U.S. Diversified Equity (USDE) Funds (+0.03%), Mixed-Asset Funds (-0.66%), and Sector Equity Funds (-1.80%).• The Sector Equity Funds macro-classification housed four of the five best performing classifications in the equity universe, with Commodities Energy Funds (+9.27%, the equity universe’s top-performing classification) and Commodities Agricultural Funds (+5.28%) posting the strongest returns of that group. • Despite ongoing geopolitical concerns, investors bid up China Region Funds (+7.64%) and Japanese Funds (+3.95%) during the quarter. 
Jun 16, 2015

Investors Are Still Drawn to World Equity Funds in May

For the first month in three mutual fund investors injected net new money into the conventional funds business (+$38.1 billion). Money market funds (+$20.3 billion) experienced net inflows for the first month in five, while investors continued to pad the coffers of stock & mixed-asset funds (+$3.3 billion) and bond funds (+$14.6 billion). The World Equity Funds macro-classification (+$11.8 billion) took in the largest monthly net inflows of Lipper’s five equity macro-classifications.For the fourth consecutive month authorized participants (APs) were net purchasers of exchange-traded fund (ETF) assets (+$11.7 billion), injecting $12.6 billion net into stock & mixed-asset ETFs, while withdrawing a net $1.0 billion from bond ETFs. APs also continued their interest in World Equity ETFs, injecting a net $12.7 billion into the macro-classification.
Jun 02, 2015

The Month in Closed-End Funds: May 2015

For the first month in six both equity and fixed income closed-end funds (CEFs) suffered negative returns, with equity funds losing on average 0.10% on a net-asset-value (NAV) basis, while, their fixed income counterparts lost 0.21% on average.  For May only 9% of all CEFs traded at a premium to their NAV, with 10% of equity funds and 8% of fixed income funds trading in premium territory. Lipper’s World Equity CEFs macro-classification witnessed the smallest widening of discounts for the month—9 basis points (bps) to 11.42%. For the second consecutive month all of Lipper’s municipal bond CEF classifications posted returns in the red, with High Yield Municipal Debt CEFs (-0.15%) mitigating losses better than the other classifications in the muni group. Mixed-asset CEFs (+0.64%) outpaced their domestic equity CEFs (-0.17%) and world equity CEFs (-0.42%) brethren. Convertible Securities CEFs (+1.89%) posted the strongest return in the equity universe for the month, while Natural Resources CEFs (-3.53%) was at the bottom. 
May 18, 2015

World Equity Funds Still on the Top of the Charts for April

For the second consecutive month mutual fund investors withdrew money from the conventional funds business. Money market funds (-$75.2 billion) experienced the only net outflows for April of the three broad asset classes, while investors injected $6.9 billion into stock & mixed-asset funds and $12.7 billion into bond funds. The World Equity Funds macro-classification (+$18.2 billion, its largest net inflows since at least January 2008) took in the largest monthly net inflows of Lipper’s five equity macro-classifications.For the third consecutive month authorized participants (APs) were net purchasers of exchange-traded fund (ETF) assets (+$15.3 billion), injecting $10.3 billion net into stock & mixed-asset ETFs and a net $5.0 billion into bond ETFs for April. APs also had a predilection for World Equity ETFs, injecting a net $23.2 billion into the macro-classification—its largest net inflows since at least September 2009.  
May 04, 2015

The Month in Closed-End Funds: April 2015

April was an up month for equity and fixed income closed-end funds (CEFs). Equity CEFs posted their second month of positive returns in three, gaining on average 2.07% on a net-asset-value (NAV) basis. Meanwhile, for the second consecutive month their fixed income counterparts just managed to post a plus-side return on average, gaining 0.06%.  For April only 12% of all CEFs traded at a premium to their NAV, with 10% of equity funds and 13% of fixed income funds trading in premium territory. Lipper’s World Equity CEFs macro-classification witnessed the only widening of discounts for the month—29 basis points (bps) to 11.32%. In an about-face from March all of Lipper’s municipal bond CEF classifications posted returns in the red, with General & Insured Municipal Debt CEFs (Unleveraged) (-0.41%) mitigating losses better than the other classifications in the muni group. World equity CEFs (+3.56%) outpaced their domestic equity CEFs (+1.83%) and mixed-asset CEFs (+0.50%) brethren. Natural Resources CEFs (+6.05%) posted the strongest return in the equity universe for the month, while Real Estate CEFs (-1.84%) was at the bottom. 
Apr 21, 2015

APs and Retail Investors Embrace World Equity Funds in March

For the second month in three mutual fund investors withdraw money from the conventional funds business. Money market funds (-$29.8 billion) experienced the only net outflows of the three broad asset classes for March, while investors injected $14.7 billion into stock & mixed-asset funds and $13.3 billion into bond funds. The World Equity Funds macro-classification (+$14.8 billion, its largest net inflows since January 2014) took in the largest monthly net inflows of Lipper’s five equity macro-classifications.For the second consecutive month authorized participants (APs) were net purchasers of exchange-traded fund (ETF) assets (+$28.0 billion), injecting $28.7 billion net into stock & mixed-asset ETFs for March, while being net redeemers of bond ETFs (-$0.7 billion, their first month of net redemptions in six). APs scooped up World Equity ETFs, injecting a net $20.4 billion into the macro-classification--its largest net inflows since at least September 2009.  
Apr 09, 2015

Oil Takes Bonds for a Wild Ride

We began 2015 where we left off 2014: watching oil prices slide in a tailspin as the world stood awash in too much oil. Beginning in June of last year, oil prices (such as the U.S. benchmark West Texas Intermediate [WTI] crude as well as the global Brent) tumbled as U.S.-based production ramped up and OPEC’s Saudi leaders refused to scale back production. But what was begun by the Saudis as a means to protect market share by driving out higher-cost U.S. drillers turned into an all-out rout of oil producers at home and abroad. Suddenly, the heartland of America looked a little less stable than it did six months prior as energy-related job losses mounted. And the loss of a substantial means of funding in Russia pushed its leaders into economic and political crisis mode. Both of those situations are bullish for Treasuries, as any uptick in unemployment (or even sluggish jobs growth) will tend to make the Federal Reserve reluctant to change the near-zero federal funds rate, and saber rattling always brings traders back to the safety of Treasuries.The next source of trouble for oil, though, is any removal of sanctions against Iran. With 30 million barrels of oil sitting in tankers waiting to ship out and a sanctions agreement possible as early as June, a further halving of oil prices is not unquestionable. Look for Treasuries to rally as knock-on effects figure greatly.

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