According to Strategic Insight's latest report on fund flows, December saw the highest flow to equities in recent years and a spike in bond fund redemptions, which they believe is temporary. “Because many investors engage in year-end portfolio adjustments and tax-related moves, December is a difficult month from which to draw firm conclusions. However, it is clear that stock investor sentiment is slowly improving,” said Avi Nachmany, SI’s Director of Research.Total equity inflows were about $23.2 billion, but domestic equity still saw huge outflows last month. Do you see clients warming up to equities and dumping bonds? See this story we wrote in December: http://bit.ly/gTuS7n SI's outlook for 2011 was also very interesting:"Investors should continue to gravitate towards less-correlated asset classes and strategies, feeding demand for 'alternative' funds and funds with more flexible mandates. And demand should continue in 2011 for funds that offer packaged solutions, in either fund-of-fund format or in go-anywhere, tactical asset allocation funds. 'The US mutual fund industry is going through a period of unprecedented innovation these days, which will benefit investors for years to come,' Nachmany said."How do you see demand changing so far this? What alternative funds are you turning to?