Finance
Global equity funds receive inflows for first time in 10 weeks
Published by Jessica Weisman-Pitts
Posted on October 28, 2022
2 min readLast updated: February 3, 2026
Global Banking & Finance Review®
Company
Published by Jessica Weisman-Pitts
Posted on October 28, 2022
2 min readLast updated: February 3, 2026
(Reuters) – Global equity funds attracted money inflows in the week ended Oct. 26, bolstered by expectations the Federal Reserve would slow its pace of rate hikes to counter the economic slowdown.
(Reuters) – Global equity funds attracted money inflows in the week ended Oct. 26, bolstered by expectations the Federal Reserve would slow its pace of rate hikes to counter the economic slowdown.
According to Refinitiv Lipper data, investors bought a net $7.8 billion worth of global equity funds in the week, after ditching them in the previous nine weeks.
U.S. equity funds obtained $7.9 billion, while Asian equity funds received $2.1 billion. On the other hand, European equity funds faced net sales of $2.3 billion during the week, the data showed.
Graphic: Global fund flows- https://fingfx.thomsonreuters.com/gfx/mkt/znpnbdlgnpl/global%20flows.jpg
U.S. business activity contracted for a fourth straight month, data on Monday showed, suggesting that the Fed’s rate increases have softened the economy, which in turn raised hopes that the central bank could begin slowing the pace of the hikes.
Global stock markets were also buoyed this week after the Bank of Canada delivered a smaller-than-expected interest rate hike and said it was getting closer to the point where rate increases could end.
Graphic: Equity sector flows – https://fingfx.thomsonreuters.com/gfx/mkt/jnvwygjorvw/Global%20sectors.jpg
However, lingering worries over an economic recession were evident, as investors put a huge amount of money in safer money market funds.
The data showed global money market funds received inflows worth $18.6 billion, its fourth consecutive weekly inflow.
Meanwhile, global bond funds had outflows for the 10th successive week, with net sales of $4.9 billion.
Emerging market (EM) bonds and equities faced outflows worth $2.1 billion and $1.4 billion respectively, data for 24,664 EM funds showed.
Graphic: EM Flows- https://fingfx.thomsonreuters.com/gfx/mkt/gdvzqrkgjpw/EM%20flows.jpg
Among commodity funds, precious metal funds had outflows of $457 million, lesser than the net sales of $1.2 billion in the previous week. Energy funds, on the other hand, received a small inflow of $81.3 million.
(Reporting By Patturaja Murugaboopathy in Bengaluru; editing by David Evans)
An equity fund is a type of mutual fund that primarily invests in stocks or shares of companies. It aims to provide capital appreciation and is suitable for investors looking for long-term growth.
Money market funds are a type of mutual fund that invests in short-term, low-risk securities. They are designed to provide liquidity and preserve capital while offering modest returns.
A bond fund is a mutual fund that invests primarily in bonds or other debt securities. It aims to provide income through interest payments and is generally considered less risky than equity funds.
A net inflow refers to the total amount of money that investors put into a fund minus the amount withdrawn. Positive net inflows indicate growing investor confidence and demand for the fund.
The Federal Reserve, often referred to as the Fed, is the central bank of the United States. It regulates the nation's monetary policy, including interest rates and money supply, to promote economic stability.
Explore more articles in the Finance category
