(Reuters) – Investments into global money market funds surged to the highest in a year in the week ended April 28, on worries about rising coronavirus cases and the possibility of the Federal Reserve scaling back its huge quantitative easing programme.
Global money market funds received a net inflow of $69.16 billion, the biggest since April last year, data from Refinitiv Lipper showed.
Global equity funds, on the other hand, recorded net outflows of $15.3 billion on concerns over the speed of a recent price rally and caution ahead of earnings results by some top firms.
Fund flows into global equities bonds and money markets https://fingfx.thomsonreuters.com/gfx/mkt/ygdpzlxmxpw/Fund%20flows%20into%20global%20equities%20bonds%20and%20money%20markets.jpg
Outflows from U.S equity funds totalled $22.2 billion. Asian equity funds had a small inflow of $0.76 billion, although Japan and India saw outflows of $1.2 billion and $296 million respectively on concerns over local spikes in coronavirus cases.
European equity funds recorded an inflow of $11.17 billion, bolstered by strong corporate earnings and optimism about an economic recovery from the COVID-19 pandemic.
Global fund flows into equity sectors https://fingfx.thomsonreuters.com/gfx/mkt/azgvoxoawpd/Global%20fund%20flows%20into%20equity%20sectors.jpg
Meanwhile, global bond funds saw their smallest inflow in four weeks at $10.3 billion.
Global bond funds’ flows in the week ended April 28 https://fingfx.thomsonreuters.com/gfx/mkt/xlbpgekjopq/Global%20bond%20funds%20flows%20in%20the%20week%20ended%20April%2028.jpg
In commodities, precious metal funds posted their first net inflow in 12 weeks, of $1 million, while energy funds saw a second straight week of outflows.
Fund flows into EM equities and bonds https://fingfx.thomsonreuters.com/gfx/mkt/oakpewbezpr/Fund%20flows%20into%20EM%20equities%20and%20bonds.jpg
An analysis of 23,873 emerging-market funds showed equity funds pulled in a net $657 million, notably higher than the $25 million in the previous week, while bond funds suffered $181 million in outflows.
(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Kirsten Donovan)
