– Global equity funds have drawn record inflows of money this year as an economic rebound and a surge in demand after pandemic restrictions were eased have boosted companies’ profits.
According to Refinitiv data, investors poured $704.16 billion into equity funds between January and November, already surpassing 2007’s previous annual record of $550.9 billion.
(Graphic: Yearly fund flows into global equities, bonds and money markets, https://fingfx.thomsonreuters.com/gfx/mkt/zdpxoxqqzvx/Yearly%20fund%20flows%20into%20global%20equities%20bonds%20and%20money%20markets.jpg)
Tech funds alone drew inflows worth $71.7 billion in January-November, a 9% increase over the same period last year.
Financials and consumer discretionary sector funds attracted record inflows of $36.45 billion and $19 billion respectively.
Investment in healthcare funds dropped 45% from the same period last year, however, to just $14.4 billion.
Global bond funds attracted $868.4 billion in the first eleven months of 2021, up from $399.33 billion in January-November last year and easily exceeding the $517.35 billion of net purchases seen in all of 2020.
(Graphic: Global fund flows into equity sectors, https://fingfx.thomsonreuters.com/gfx/mkt/znvnexllwpl/Global%20fund%20flows%20into%20equity%20sectors.jpg)
Short and medium-term bond funds attracted $303.89 billion in net buying in the year to November, while government bond funds lured $200.59 billion compared with inflows of just $58.21 billion in the same period a year ago.
Inflation-protected funds drew in $88.42 billion, a six-fold increase from January-November 2020, reflecting growing worries about rising prices.
Global high-yield bond funds saw inflows fall about 70% from last year, to $17.49 billion in January-November.
(Graphic: Global bond fund flows this year, https://fingfx.thomsonreuters.com/gfx/mkt/jnpweajlgpw/Global%20bond%20funds’%20flows%20this%20year.jpg)
Global money market funds drew net purchases of $221.27 billion, a big fall from $990.83 billion in the first eleven months of 2020.
Within commodities, precious metal funds witnessed outflows of $6.7 billion, while energy funds saw net selling of $5.02 billion.
An analysis of 33,794 emerging market funds showed equity funds drew a net $107.58 billion of buying and bond funds lured in $40.63 billion in the year to November, after each seeing outflows last year.
(Graphic: Fund flows into EM equities and bonds, https://fingfx.thomsonreuters.com/gfx/mkt/gdpzymkkzvw/Fund%20flows%20into%20EM%20equities%20and%20bonds.jpg)
In the week ended Dec. 8, global equity funds received inflows of $2.71 billion, while bond funds drew in $4.06 billion, the data showed.
(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Catherine Evans)
