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Global equity funds see first weekly inflows in 7 weeks

Global equity funds see first weekly inflows in seven weeks

Global equity funds saw inflows in the week to May 25, with some investors rejoicing in the rebound in markets this week after sharp declines in stock markets in the previous seven weeks.

According to Refinitiv Lipper, investors bought $6.16 billion net in global equity funds, marking their first weekly net purchase since April 6.

Chart: Flows of funds: global stocks, bonds and money market

The MSCI All-Country World Index gained more than 3% this week, after falling around 12.7% in the past seven weeks on fears that aggressive rate hikes to tame inflation could drag the index down. Mondial economy.

The large inflows into global equity funds were also due to the creation of new stocks in exchange-traded funds (ETFs), Jefferies said in a note.

The data showed equity ETFs saw inflows worth $15.76 billion during the week, the highest in nine weeks.

US and Asian equity funds saw inflows of $4.61 billion and $1.22 billion, respectively, but European funds attracted only $0.13 billion.

Chinese equity funds secured $0.58 billion, marking their first weekly net purchase in seven weeks.

Data from sector funds showed that industrials attracted inflows of $713 million, but financials and technology continued to face outflows, amounting to $1.74 billion and $1.7 billion, respectively. $44 billion.

Chart: Flow of Funds: Global Equity Sector Funds

Meanwhile, investors sold $9.94 billion net of bond funds during the week, their eighth consecutive weekly outflow.

Global investors exited short- and mid-term bond funds worth $5.14 billion, while high-yield funds saw outflows of $2.18 billion.

However, inflation-linked funds gained $0.59 billion and government bond funds gained $3.85 billion, recording inflows for a fifth consecutive week.

Chart: Global Bond Fund Flows Week Ended May 25

On the other hand, investors bought $23.13 billion worth of money market funds after three consecutive weeks of net sales.

Data from commodities funds showed that gold and precious metals funds received $1.36 billion after four weeks of net sales, but energy funds saw outflows of $29 million.

An analysis of 24,276 emerging markets funds showed investors sold $1.5 billion of bond funds and $332 million of equity funds, marking the seventh consecutive weekly outflow.

Chart: Flow of funds: Emerging market stocks and bonds


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