Global equity funds draw inflows on economic growth hopes
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GLOBAL investors turned net buyers of equity funds in the week to Jun 28 as solid economic readings fuelled hopes of US growth, while China’s policy measures to bolster its economy further boosted sentiment.
According to Refinitiv Lipper data, global equity funds saw a net US$2.81 billion in inflows after booking about US$15.96 billion worth of outflows in the previous week.
Robust readings on new US home sales and consumer confidence helped soothe investors’ worries over a looming recession as the Federal Reserve seeks to cool demand to tame inflation.
Chinese Premier Li Qiang said this week China would take steps to boost demand, invigorate markets and promote development, and added that its economic growth in the second quarter would be higher than the first quarter.
The US and Asian equity funds attracted US$2.1 billion and US$1.16 billion, respectively, in inflows, while European funds saw about US$1 billion worth of net outflows.
Sectoral equity funds, however, suffered net selling of US$1.38 billion, with materials and consumer staples losing US$530 million and US$373 million, respectively, while utilities saw US$303 million in outflows.
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Meanwhile, global bond funds drew US$6.95 billion in net purchases after posting about US$857 million in outflows in the previous week.
Global government bond funds received a net US$3.1 billion, the biggest inflow in five weeks. Investors also purchased US$786 million worth of corporate bond funds but sold US$1.04 billion of high-yield funds.
Money market funds recorded outflows for a third straight week, amounting to a net US$31.68 billion.
Data for commodity funds showed that investors offloaded US$728 million worth of precious metal funds in their fifth straight week of net selling. Energy funds also booked outflows of about US$193 million.
Meanwhile, demand for emerging market funds sustained for a third successive week, with investors pouring a net US$89 million and US$14 million into equity and bond funds, respectively. REUTERS
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