Global bond, money market funds attract inflows on rising virus concerns
New York (Apr 23) Investors poured $16.4 billion into global bond funds and $14.9 billion into money market funds in the week ending April 21, according to Refinitiv Lipper data, as concerns about a global rise in COVID-19 cases prompted moves towards safer assets.
The inflows at global bond funds were roughly 2% higher than in the previous week, the data showed. The massive inflows into money market funds came after an outflow of $50 billion in the last week.
However, global equity funds saw inflows of $10.8 billion, around 33% less than in the week before.
Flows into global funds
The slowing money inflows into equity funds came as investors started to question lofty stock valuations amid a rise in coronavirus cases and its impact on the global economic rebound.
The majority of equity inflows, however, were at European equity funds, which obtained $8.2 billion, compared with an inflow of $1.5 billion Asian funds and $0.8 billion at U.S. funds.
European equities touched a record high this week, on expectations of higher earnings growth in the first quarter on the back of recovery from lockdowns.
Hit by rising coronavirus cases, Indian equity funds faced an outflow of $287 million in the week, the data showed, their biggest outflow in three months.
India reported the world’s highest daily tally of coronavirus cases for the second day on Friday.
Flows into sector funds.
Reuters
