Global equity funds see biggest inflow in three weeks

1 min read
FILE PHOTO: The Charging Bull or Wall Street Bull is pictured in Manhattan, New York City

– Global equity funds lured big inflows in the seven days to Feb. 2 on optimism over strong earnings from U.S. technology companies and on hopes that inflation would ease later this year.

Investors secured global equity funds of $14.34 billion in their biggest weekly purchase since Jan. 12, Refinitiv Lipper data showed.

https://fingfx.thomsonreuters.com/gfx/mkt/lgpdwxjozvo/Fund%20flows-%20Global%20equities%20bonds%20and%20money%20market.jpg

Strong earnings from tech firms including Apple Inc, Alphabet and chipmaker Advanced Micro Devices, boosted investor appetite during the week. Investors purchased European and Asian equity funds of $15.44 billion and $3.16 billion respectively, while selling U.S. equity funds of $7.9 billion. Tech and consumer discretionary sector equity funds posted outflows of over $1.1 billion each, while financials obtained inflows worth $0.64 billion.

https://fingfx.thomsonreuters.com/gfx/mkt/klvykmqnavg/Fund%20flows-%20Global%20equity%20sector%20%20funds.jpg

Global bond funds witnessed net selling for a fourth successive week amounting to $4.85 billion.

Global high yield bond funds led with outflows of $5.98 billion, the biggest since March 2020.

“We expect 2022 to be a volatile year for all risk assets, including high yield bonds,” said Ryan O’Malley, portfolio manager at Sage Advisory Services.

Investors sold $2 billion worth of short- and medium-term bonds finds. Government bond funds drew inflows of $1.19 billion. Meanwhile, inflation protected bond funds posted outflows worth $1.95 billion, their largest in 22 months.

https://fingfx.thomsonreuters.com/gfx/mkt/zjvqkannqvx/Global%20bond%20fund%20flows%20in%20the%20week%20ended%20Feb%202.jpg

Global money market funds witnessed outflows worth $21.72 billion after seeing some small purchases in the previous week.

Among commodities, precious metal funds attracted inflows of $426 million in a third straight week of net buying, although energy faced a fourth straight weekly outflow, amounting to $308 million.

An analysis of 24,000 emerging market funds showed bond funds received $360 million in net buying after three consecutive weeks of outflows, while equity funds pulled in $2.31 billion worth of inflows.

https://fingfx.thomsonreuters.com/gfx/mkt/dwpkrjkzovm/Fund%20flows-%20EM%20equities%20and%20bonds.jpg

(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by William Maclean)

tagreuters.com2022binary_LYNXMPEI130M4-BASEIMAGE