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Global equity funds secure biggest inflows in 2 years in week ended Feb 10

Published 02/11/2021, 02:43 AM
Updated 02/11/2021, 02:45 AM
© Reuters. FILE PHOTO: A picture illustration shows U.S. 100 dollar bank notes

(Reuters) - Global equity funds led inflows in the week to Feb. 10, bolstered by upbeat corporate earnings and the prospects of a U.S. stimulus package.

Investors purchased $43.1 billion in equity funds in the past week to Wednesday, the most since at least mid-March 2019, Refinitiv Lipper data showed.

The higher inflows into equity funds come as the MSCI world equity index, which tracks shares in 49 countries, touched a new peaks on Wednesday.

Bond funds also saw a higher inflow of $18.03 billion, the data showed, thanks to rising U.S. Treasury yields.

(GRAPHIC: Fund flows into global equities, bonds and money markets - https://fingfx.thomsonreuters.com/gfx/mkt/ygdvzeqjxpw/Fund%20flows%20into%20gobal%20equities%20bonds%20and%20money%20markets.jpg)

Funds focused on the information technology sector attracted about $7.2 billion in inflows, the biggest since at least mid-March 2019, data for 1,160 tech funds, based on Lipper's sector classification, showed.

(GRAPHIC: Global fund flows into equity sectors - https://fingfx.thomsonreuters.com/gfx/mkt/gjnvwzykqpw/Global%20fund%20flows%20into%20equity%20sectors.jpg)

Emerging market funds also attracted heavy inflows in the week. Refinitiv data covering 14,352 emerging-market equity funds and 9,210 emerging-market bond funds showed inflows worth $3.02 billion and $2.9 billion, respectively.

On the other hand, money market funds witnessed $3.3 billion in outflows, signalling that investors were looking to invest in riskier assets during the week.

© Reuters. FILE PHOTO: A picture illustration shows U.S. 100 dollar bank notes

(GRAPHIC: Fund flows into EM equities and bonds - https://fingfx.thomsonreuters.com/gfx/mkt/azgpoeblwpd/Fund%20flows%20into%20EM%20equities%20and%20bonds.jpg)

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