Investing
Global equity funds see first weekly inflows in seven weeks
Global Banking & Finance Review®
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(Reuters) – Global equity funds saw money inflows in the week to May 25 as some investors took heart from a rebound in markets this week, after sharp declines in stock markets in the previous seven weeks.
(Reuters) – Global equity funds saw money inflows in the week to May 25 as some investors took heart from a rebound in markets this week, after sharp declines in stock markets in the previous seven weeks.
According to Refinitiv Lipper, investors bought a net $6.16 billion worth of global equity funds, marking their first weekly net buying since April 6.
The MSCI all country world index has gained over 3% this week, after slumping about 12.7% in the last seven weeks on worries that aggressive rate increases to tame inflation could send the global economy into a tailspin.
The big inflows into global equity funds were also due to the creation of new shares in the equity exchange-traded funds (ETF), Jefferies said in a note.
The data showed equity ETFs saw inflows worth $15.76 billion in the week, the highest in nine weeks.
U.S. and Asian equity funds had inflows of $4.61 billion and $1.22 billion, respectively, but European funds attracted just $0.13 billion.
Chinese equity funds obtained $0.58 billion, marking their first weekly net buying in seven weeks.
Data for sector funds showed industrials drew inflows of $713 million but financials and tech continued to face outflows, amounting $1.74 billion and $1.44 billion, respectively.
Meanwhile, investors sold a net $9.94 billion of bond funds in the week, their eight consecutive weekly outflow.
Global investors exited short- and medium-term bond funds worth $5.14 billion, while high yield funds witnessed outflows of $2.18 billion.
However, inflation linked funds obtained $0.59 billion and government bond funds gained $3.85 billion, posting inflows for a fifth straight week.
On the other hand, investors purchased $23.13 billion of money market funds after three weeks of net selling in a row.
Data for commodity funds showed gold and precious metal funds received $1.36 billion after four weeks of net selling but energy funds saw outflows of $29 million.
An analysis of 24,276 emerging market funds showed investors sold $1.5 billion of bond funds and $332 million of equity funds, marking the seventh weekly outflow in a row.
(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Kim Coghill)
An equity fund is a type of mutual fund or exchange-traded fund that invests primarily in stocks, aiming to provide capital appreciation over time.
Bond funds are investment funds that invest primarily in bonds and other debt securities, providing income through interest payments.
A money market fund is a type of mutual fund that invests in short-term, low-risk securities, providing liquidity and stability.
An ETF is a type of investment fund that is traded on stock exchanges, similar to stocks, and typically tracks an index or a basket of assets.
Market capitalization is the total market value of a company's outstanding shares, calculated by multiplying the stock price by the total number of shares.
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