LONDON – Money market funds saw the biggest two-month inflow streak since June 2020 while European equity funds suffered at $3.4 billion their biggest weekly outflows in over a year as investors cut riskier bets in the closing weeks of the year, BofA said.
Cash funds enjoyed the biggest weekly inflows in the week to Wednesday at $43.2 billion, followed by equities at $10.6 billion, according to BofA’s weekly flows note released on Friday and based on EPFR data.
In a sign that investors took the opportunity to “buy the dip” in equity markets after the Omicron variant news hit headlines, the U.S. investment bank’s private clients poured the third largest weekly inflow of 2021 into stocks last week.
Narrowing market breadth remained a concern. Just five of the biggest U.S. technology stocks accounted for 64% of the nearly 23% gains in U.S stocks, BofA analysts noted.
(Reporting by Saikat Chatterjee; Editing by Karin Strohecker)
