Global equity funds see biggest inflow in 10 weeks -Lipper


FILE PHOTO: Federal Reserve Chair Jerome Powell and New York Federal Reserve President John Williams walk together, ahead of the Kansas City Federal Reserve Bank’s annual conference on monetary policy, in Jackson Hole, Wyoming, U.S., August 22, 2019. REUTERS/Ann Saphir

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:

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:

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:

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:

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

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