Baku. 27 October. REPORT.AZ/ $200 billion flows out of active investment funds in 2016 as investors abandon stock markets.
Report informs referring to Vesti.ru, US based bank Merrill Lynch reports a record loss of investment funds.
The reasons are intervention of central banks in market processes, low volatility, high collections by managers of investment funds. Capital outflow from active funds in US in 2016 reached $16.9 billion its 5-year high. Only minor part of the money leaving funds is directed to passive funds with major part being kept aside.
On the other hand, investors turn to Exchange Traded Funds (ETF). 2.4 billion was invested in ETFs within a week. The reason is profit of index prices exceeds that of hedge funds. Hedge funds live harder times. Thus, “eVesstment” consulting company reports highest in seven years - $10 billion in September, $29.2 billion in 3rd quarter - outflow from hedge funds. Hedge funds lost total $60 billion in 2016.
However, the process didn’t result in decline of market indexes so far. But experts forecast abrupt collapse in stock markets if capital outflow doesn’t stop.