(Reuters) – Global equity funds lured the highest inflow in two months in the week ended June 23, as investors focussed on prospects for post-pandemic growth rather than fretting over the hawkish stance taken by the U.S. Federal Reserve last week.
Global equity funds received a net $22.9 billion in the week, the biggest since the week ended March 24, data from Refinitiv Lipper showed.
Graphic: Fund flows into global equities bonds and money markets – https://fingfx.thomsonreuters.com/gfx/mkt/yxmvjzoyzvr/Fund%20flows%20into%20global%20equities%20bonds%20and%20money%20markets.jpg
Global stocks have rebounded this week after steep losses after the Federal Reserve unexpectedly signalled that it could begin tapering its massive stimulus sooner than expected and also flagged its intention to consider withdrawing its monetary stimulus moving forward.
U.S equity funds led inflows with net purchases worth $16.1 billion, which was the biggest in 14 weeks. However, European equity funds and Asian equity funds had inflows of just $3.4 billion and $1.8 respectively.
Among equity sector funds, tech funds had inflows worth $1.4 billion, the highest in 10 weeks, while financial sector funds faced outflows worth $2.36 billion, the largest since March 2020.
Graphic: Global fund flows into equity sectors – https://fingfx.thomsonreuters.com/gfx/mkt/dgkvlrgervb/Global%20fund%20flows%20into%20equity%20sectors.jpg
Meanwhile, global bond funds had net buying of $3.5 billion in the week to June 23, which was the smallest in four weeks.
Inflows into inflation-linked bonds dropped to an eight-week low of $31 million.
Graphic: Global bond funds flows in the week ended June 23 – https://fingfx.thomsonreuters.com/gfx/mkt/jznpnyeabvl/Global%20bond%20funds%20flows%20in%20the%20week%20ended%20June%2023.jpg
However, global money market funds faced an outflow of $58.9 billion in the week, their biggest this year, which underscores a rise in risk sentiment this week.
Among commodity funds, precious metal funds faced net sales worth $215 million, while energy funds also witnessed outflow for fourth consecutive week.
An analysis of 23,735 emerging-market funds showed bond funds faced net selling worth $1.23 billion, marking the first outflow in four weeks, and equity funds had outflows of $183 million, compared with $1.5 billion worth of inflows in the previous week.
Graphic: Fund flows into EM equities and bonds – https://fingfx.thomsonreuters.com/gfx/mkt/yzdvxlobovx/Fund%20flows%20into%20EM%20equities%20and%20bonds.jpg
(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Alex Richardson)
