(Reuters) – Global equity funds received large inflows in the week through Sept. 1 as dovish remarks from the Federal Reserve bolstered optimism in an economic rebound and eased fears of a sudden tapering in monetary stimulus.
According to Lipper data, investors bought $19.19 billion in global equity funds in the week to Wednesday, which was the biggest weekly inflow since June 23.
Fund flows into global equities bonds and money markets: https://tmsnrt.rs/3mVYj8Y
At the Jackson Hole symposium, Federal Reserve Chair Jerome Powell allayed market fears of a fast withdrawal of pandemic-era stimulus by indicating that the bank would remain cautious in raising interest rates as it tries to nurse the economy to full employment.
Investors pumped in investments worth a net $11.64 billion into U.S. equity funds, while European and Asian funds attracted $4.78 billion and $1.54 billion respectively.
Among equity sector funds, investors purchased a net $1.64 billion in technology sector, marking its biggest weekly inflow in six weeks. Financials and healthcare funds also received inflows of $879 million and $702 million, respectively.
Global fund flows into equity sectors: https://tmsnrt.rs/3yGJfOE
Global bond funds also remained in demand and pulled in a net $16.87 billion, their largest inflow in eight weeks.
High yield bond funds had inflows of $2.38 billion, the biggest in two months, short and medium-term bond funds attracted $3.77 billion, a 56% increase over previous week.
Meanwhile, government bond funds faced a 40% dip in inflows from the preceding week to $1.37 billion.
Global bond funds’ flows in the week ended Sep 1: https://tmsnrt.rs/2VaCUNI
Among commodity funds, precious metal funds received a net $236 million after facing three straight weeks of outflows, while energy funds witnessed outflows for a third consecutive week.
Global money market funds saw outflows of $46.25 billion during the week, which was its largest outflow in 10 weeks.
An analysis of 23,859 emerging market funds showed investors bought a net $1.47 billion in equity funds and $986 million in bond funds.
Fund flows into EM equities and bonds: https://tmsnrt.rs/2VaCUNI
(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Toby Chopra)
