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Global equity funds see third successive weekly inflows- Lipper

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.

Global equity funds see third successive weekly inflows- Lipper

FILE PHOTO: Rolled Euro banknotes are placed on U.S. Dollar banknotes in this illustration taken May 26, 2020. REUTERS/Dado Ruvic/Illustration

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 US$14 billion in the week, though the tally was down 35per cent from the previous week.

European equity funds and U.S. equity funds had inflows worth US$6.3 billion and US$4.8 billion respectively, while Asian equity funds received only US$1.9 billion.

Title: Fund flows into global equities bonds and money markets, https://fingfx.thomsonreuters.com/gfx/mkt/qmypmdbnxvr/Fundper cent20flowsper cent20intoper cent20globalper cent20equitiesper cent20bondsper cent20andper cent20moneyper cent20markets.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 US$1.7 billion, the biggest in 11 weeks, while financials saw outflows worth US$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 US$14.8 billion, the biggest since the week ended May 5.

Title: Global fund flows into equity sectors, https://fingfx.thomsonreuters.com/gfx/mkt/ygdvzzkdevw/Globalper cent20fundper cent20flowsper cent20intoper cent20equityper cent20sectors.jpg

Inflows into government bond funds jumped to a four-week high of US$3.3 billion, data from 2,981 funds showed.

Meanwhile, money market funds saw outflows of US$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 US$1.35 billion, the biggest outflow since mid-September, while bond funds had inflows of US$530 million, compared with US$1.4 billion worth of outflows in the previous week.

Title: Fund flows into EM equities and bonds, https://fingfx.thomsonreuters.com/gfx/mkt/yzdpxlqowpx/Fundper cent20flowsper cent20intoper cent20EMper cent20equitiesper cent20andper cent20bonds.jpg

Title: Global bond funds flows in the week ended June 30, https://fingfx.thomsonreuters.com/gfx/mkt/jznvnylegpl/Globalper cent20bondper cent20fundsper cent20flowsper cent20inper cent20theper cent20weekper cent20endedper cent20Juneper cent2030.jpg

(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Kim Coghill)

Source: Reuters

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