Global money market funds post highest inflows in a year: Lipper
(Reuters) – Investments in global money market funds hit their highest level in a year during the week ended April 28, amid concerns over rising coronavirus cases and the possibility that the Reserve Federal government cuts its massive quantitative easing program.
Global money market funds received a net inflow of $ 69.16 billion, the largest since April last year, according to data from Refinitiv Lipper.
Global equity funds, on the other hand, posted net outflows of $ 15.3 billion amid concerns over the speed of a recent price rally and cautiousness ahead of some large companies’ earnings.
Funds flock to global equity bonds and money markets
Outflows from US equities totaled $ 22.2 billion. Asian equity funds saw a small inflow of $ 0.76 billion, although Japan and India saw outflows of $ 1.2 billion and $ 296 million respectively due to concerns over local peaks of coronavirus cases.
European equity funds saw an inflow of $ 11.17 billion, supported by strong corporate earnings and optimism about an economic recovery from the COVID-19 pandemic.
Global funds move towards equity sectors
Meanwhile, global bond funds recorded their smallest inflow in four weeks at $ 10.3 billion.
Global bond fund flows for the week ended April 28
In commodities, precious metals funds posted their first net entry in 12 weeks, of $ 1 million, while energy funds saw a second straight week of exits.
Funds are moving towards emerging market equities and bonds
An analysis of 23,873 emerging market funds showed that equity funds generated a net amount of $ 657 million, significantly higher than the $ 25 million the previous week, while bond funds suffered outflows. fund of $ 181 million.
Report by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Kirsten Donovan