Global equity funds bag first weekly inflow in 10 weeks
GLOBAL equity funds drew their first weekly inflow in 10 weeks in the week to Wednesday (Jan 11), on hopes of easing inflation and expectations that China’s reopening would boost global economies.
Refinitiv Lipper data showed that global equity funds attracted US$5.2 billion in net purchases in the week. This was the first weekly inflow since Nov 2, 2022.
US consumer prices fell unexpectedly for the first time in more than 2½ years in December 2022. This came amid a decline in prices of petrol and other goods, suggesting that inflation was on a sustained downward trend.
European and Asian equity funds received US$7.4 billion and US$1.5 billion worth of inflows, respectively. But over in the US, investors exited funds worth US$2 billion. Equity funds focused on China accumulated US$1.6 billion worth of inflows, the highest amount since Jul 6, 2022.
Among equity sector funds, industrials, financials, and consumer discretionary booked inflows of US$1.2 billion, US$574 million and US$479 million, respectively. Tech suffered its 10th weekly outflow, at US$365 million.
At US$16.9 billion, weekly net purchases in global bond funds hit their highest since April 2021.
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Global short and mid-term bond funds attracted inflows of US$3.9 billion, while high-yield bond funds gained US$3.6 billion, and government bond funds got US$1.9 billion. On the other hand, inflation-protected funds lost US$480 million in outflows.
Global investors were also net buyers in money market funds for a third straight week, with net purchases worth US$13.4 billion.
Data for commodity funds showed precious metals received a marginal US$5 million, while energy funds received US$144 million, marking a second weekly inflow.
Other data for 24,627 emerging market funds showed that bond funds secured US$730 million in net buying. Equity funds drew US$3.94 billion, the biggest weekly inflow since April last year. REUTERS
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