Global equity funds see biggest inflow in 10 weeks -Lipper

September 3, 2021

(Reuters) – Global equity funds received large inflows in the week through Sept. 1 as dovish remarks from the Federal Reserve bolstered optimism in an economic rebound and eased fears of a sudden tapering in monetary stimulus.

According to Lipper data, investors bought $19.19 billion in global equity funds in the week to Wednesday, which was the biggest weekly inflow since June 23.

Fund flows into global equities bonds and money markets: https://tmsnrt.rs/3mVYj8Y

At the Jackson Hole symposium, Federal Reserve Chair Jerome Powell allayed market fears of a fast withdrawal of pandemic-era stimulus by indicating that the bank would remain cautious in raising interest rates as it tries to nurse the economy to full employment.

Investors pumped in investments worth a net $11.64 billion into U.S. equity funds, while European and Asian funds attracted $4.78 billion and $1.54 billion respectively.

Among equity sector funds, investors purchased a net $1.64 billion in technology sector, marking its biggest weekly inflow in six weeks. Financials and healthcare funds also received inflows of $879 million and $702 million, respectively.

Global fund flows into equity sectors: https://tmsnrt.rs/3yGJfOE

Global bond funds also remained in demand and pulled in a net $16.87 billion, their largest inflow in eight weeks.

High yield bond funds had inflows of $2.38 billion, the biggest in two months, short and medium-term bond funds attracted $3.77 billion, a 56% increase over previous week.

Meanwhile, government bond funds faced a 40% dip in inflows from the preceding week to $1.37 billion.

Global bond funds’ flows in the week ended Sep 1: https://tmsnrt.rs/2VaCUNI

Among commodity funds, precious metal funds received a net $236 million after facing three straight weeks of outflows, while energy funds witnessed outflows for a third consecutive week.

Global money market funds saw outflows of $46.25 billion during the week, which was its largest outflow in 10 weeks.

An analysis of 23,859 emerging market funds showed investors bought a net $1.47 billion in equity funds and $986 million in bond funds.

Fund flows into EM equities and bonds: https://tmsnrt.rs/2VaCUNI

(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Toby Chopra)

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