Small cap flows catching up

SMALL CAP FLOWS CATCHING UP

Citi has spotted a pick up in inflows towards small cap equities, an interesting finding that points to investors starting to look elsewhere after a year dominated by megacaps.

Yet, the gap is still a wide one.

"Equity flows have largely tracked narrow market performance YTD. Equity inflows have mostly come via passive funds while active funds have seen outflows," says Citi strategists.

"Tech and Industrials are the only sector funds with inflows YTD. One sign of broadening would be a YTD catch-up of positive flows into small cap funds," they add.

According to Citi, small caps have now almost reversed 2022's cumulative outflows of $51 billion, mostly driven by U.S. stocks, while in Europe have seen moderated outflows.

"Reprinted with permission of Citi Research. Not to be reproduced."

(Danilo Masoni)

*****

FOR TUESDAY'S OTHER LIVE MARKETS POSTS:

EUROPEAN COMPANIES TO POST RECORD DIVIDENDS, BUYBACKS IN 2024 - GS CLICK HERE

EQUITIES: AI VERSUS GEOPOLITICAL RISKS CLICK HERE

STOXX RISES AS RESULTS IMPRESS, FTSE AT RECORD CLICK HERE

FUTURES RISE AMID FLURRY OF UPBEAT EARNINGS CLICK HERE

EYES ON PMIS FOR REBOUND SIGNS CLICK HERE