Going forward, and especially in the current environment, AST continues to follow the capital markets on both a macro and individual company micro-level. As a leading provider of ownership data management, analytics, technology and advisory services for public and private companies and mutual funds, we will share our unique insights each week in this newsletter. Please contact us to discuss any topics further.
Institutions Seek Strong Balance Sheets and Capital Preservation

Institutional investors’ activity continues to be light with a focus on profit taking and capital preservation. On the buy side, these investors are still seeking US and Canadian with dual US listing growth companies and strong balance sheets. Based on capital flow information from Lipper, all equity funds reported outflows of $1.383 billion. Meanwhile, US equity funds reported net inflows of $29MM North America.i

Volatility Moves Higher as US Begins to Re-Open

Based on settlement data, broker to broker trading increased during the week as fast money and speculative investors looked ahead to the future with Canada and the US slowly beginning to re-open. During the week, the CBOE Volatility Index (VIX) closed at 35.28 points on May 13, after closing the previous week at 27.98.ii Both prime and discount brokers drove trading. By the end of the week, Energy and Services stocks were among the top performers.iii

Shift to Money Market and US Debt Funds

Latest capital flow information from Lipper shows that investors are seeking to mitigate risk. Net inflows of $5.245 billion were reported for Corp-Investment Grade funds; meanwhile, High Yield funds reported net inflows of $4.485 billion.iv Money Market funds reported net inflows of $20.267 billion.v

This commentary is provided for general informational and/or educational or discussion purposes only, is not intended to offer legal or investment advice, and may not be relied upon as legal, investment or any other advice. If you have a specific question regarding a particular legal issue, you should consult a legal professional.
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