The extent of the surge to Japan by equity investors is written in sparkly 50-foot-high neon letters by the latest flows data out from Lipper.
We all know that Abenomics has, thus far, cast a spell over markets; the Nikkei is up about 80 percent since the middle of November, when Shinzo Abe first started looking like a bona fide challenger to win power. But it is still startling to see how flows into Japan have dominated investment behaviour.
In April alone, Japan equity funds and ETFs accounted for $9.1 billion of net inflows in a month when total net inflows across all sectors was just $9.9 billion. The money pouring into the Tokyo markets was also more than three times greater than the net inflows at the next best sector. Add the Japan Small and Midcaps sector as well as Asia Pacific funds (heavily weighted to Japan) and April net inflows inspired by the BOJs aggressive monetary policy easing reach $11.2 billion.
On a three month view, the figures show a similar trend, with Japan equity fund net inflows at $17.9 billion, much more than double the inflows enjoyed by the next best sector.
We’ve published our latest bouncy interactive graphic to let you explore the data yourself. It includes flows and performance data from all of Lipper’s equity and bond sectors across the last 12 months. Click on the image below to launch, or just click here if that seems too exhausting.