BofAML: Active Is (Kinda) Back, Baby

Don't get too excited.

The renaissance of actively managed equity funds has been something to behold. With stock correlations falling and the appetite for equities surging, the outlook for long-suffering stock pickers has reversed almost completely in just a few short months. From Morgan Stanley to Evercore the story is the same: Active management is staging a comeback.

To see just how robust the trend is, witness Bank of America Merrill-Lynch's latest fund flows report:

(Bank of America Merrill Lynch)

(Bank of America Merrill Lynch)

So it's not exactly a blowout for actively managed long-only funds. But that $500 million weekly inflow is the first positive change in 12 months for the class. All active managers need is another 10 years of flows like that and they'll have made up for 2016's $260 billion in redemptions.

Well, you gotta start somewhere.