(Reuters) – Global investors were net buyers of equity funds for a third successive week in the week to June 30. However, a resurgence of coronavirus cases in Asia and concerns over high inflation levels and their impact on monetary policy capped inflows.
According to Refinitiv Lipper data, global equity funds received inflows of $14 billion in the week, though the tally was down 35% from the previous week.
European equity funds and U.S. equity funds had inflows worth $6.3 billion and $4.8 billion respectively, while Asian equity funds received only $1.9 billion.
GRAPHIC: Fund flows into global equities bonds and money markets – https://fingfx.thomsonreuters.com/gfx/mkt/qmypmdbnxvr/Fund%20flows%20into%20global%20equities%20bonds%20and%20money%20markets.jpg
In the Asia-Pacific, Australia is battling small but fast growing outbreaks, while Indonesia is also grappling with record high-cases. Malaysia is set to extend a lockdown and Thailand has announced new restrictions.
Among equity sector funds, tech funds lured inflows of $1.7 billion, the biggest in 11 weeks, while financials saw outflows worth $1.12 billion.
Fears over the spread of the highly infectious Delta virus variant prompted more inflows into more safer debt funds during the week.
The data showed global bond funds received a net $14.8 billion, the biggest since the week ended May 5.
GRAPHIC: Global fund flows into equity sectors – https://fingfx.thomsonreuters.com/gfx/mkt/ygdvzzkdevw/Global%20fund%20flows%20into%20equity%20sectors.jpg
Inflows into government bond funds jumped to a four-week high of $3.3 billion, data from 2,981 funds showed.
Meanwhile, money market funds saw outflows of $38.1 billion, their third consecutive week of net sales.
In the commodities space, energy funds recorded a fifth straight week of outflows, while precious metal funds also had outflows for a second consecutive week, with gold prices dipping to a 2-1/2 month low this week.
An analysis of 23,713 emerging-market funds showed equity funds had net selling worth $1.35 billion, the biggest outflow since mid-September, while bond funds had inflows of $530 million, compared with $1.4 billion worth of outflows in the previous week.
GRAPHIC: Fund flows into EM equities and bonds – https://fingfx.thomsonreuters.com/gfx/mkt/yzdpxlqowpx/Fund%20flows%20into%20EM%20equities%20and%20bonds.jpg
GRAPHIC: Global bond funds flows in the week ended June 30 – https://fingfx.thomsonreuters.com/gfx/mkt/jznvnylegpl/Global%20bond%20funds%20flows%20in%20the%20week%20ended%20June%2030.jpg
(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Kim Coghill)
