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Global equity funds attract big inflows at start of new year -Lipper -Breaking

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© Reuters. FILEPHOTO: A display showing the Nikkei Index outside of a Tokyo-based brokerage, Japan on February 3, 2020. REUTERS/Kim Kyung-Hoon

(Reuters) – Massive inflows to global equity funds were recorded for the third week straight in the seven-day period ending Jan. 5. This is despite the fact that world stocks are starting the year in a stable position, despite worries about Omicron coronavirus and rising inflation. Refinitiv Lipper data shows that investors bought global equity funds in this period worth $19.01 trillion, a drop from $29.45 million the previous week.

For a related graphic on Fund flows: Global equities bonds and money market, click https://fingfx.thomsonreuters.com/gfx/mkt/dwvkrkeoapm/Fund%20flows-%20Global%20equities%20bonds%20and%20money%20market.jpg

The MSCI global equity index reached a new record this week. It saw strong gains from Asia to the United States.

Minutes of Wednesday’s Federal Reserve meeting seemed to cast doubt on the rally, as they pointed out a quicker-than-expected increase in U.S. rates.

A spike in U.S. Treasury yields also caused tech stocks to be affected. U.S. equity fund nets attracted $8.98B in week ended Jan. 5th, while European equity funds attracted $7.25B and $0.43B respectively. In the third week of trading, tech funds experienced a net loss of $303million. Healthcare received $564 million and financial funds received $1.21billion.

For a related graphic on Fund flows: Global equity sector funds, click https://fingfx.thomsonreuters.com/gfx/mkt/zjpqknwxwpx/Fund%20flows-%20Global%20equity%20sector%20%20funds.jpg

The net net investment by global bond fund investors was $14.95 Billion, the fourth largest weekly net buy in four months.

The weekly average inflow of short- and long-term bonds funds was $4.56 Billion, which is their largest inflow over six months. The high-yield bonds received $3.05billion, and inflation-protected funds only attracted $2.03billion.

Inflows to government bond funds have fallen to a 3-week low of $1.04 Billion.

For a related graphic on Global bond fund flows in the week ended Jan 5, click https://fingfx.thomsonreuters.com/gfx/mkt/gkplgbdrjvb/Global%20bond%20fund%20flows%20in%20the%20week%20ended%20Jan%205.jpg

Inflows to global money market funds were $19.53 trillion, which is 51% less than the week before.

The net inflows to commodities were $349 million for precious metal funds and $2 million for energy funds.

A study of 23,858 emerging markets funds found that bond funds had received $1.95billion in weekly inflows, which was their highest inflow in the past nine months. However, equity funds saw a $1.9billion increase, representing a 30% rise over the prior week.

For a related graphic on Fund flows: EM equities and bonds, click https://fingfx.thomsonreuters.com/gfx/mkt/mypmnbkdbvr/Fund%20flows-%20EM%20equities%20and%20bonds.jpg

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