LONDON, Jan 8 (Reuters) - Investors poured $1.7 billion into global emerging market equity funds in the week ending Jan. 6 but enthusiasm for commodity sector funds petered out after a 17-week streak of inflows worth $9.8 billion, fund tracker EPFR Global said on Friday.
After a record outflow of over $500 billion last year, money market funds kicked off the first trading week of the year with modest inflows totalling $2.7 billion.
In keeping with the broad trend last year, global and U.S. bond funds as well as global equity funds tracked by EPFR absorbed the bulk of commitments in the week.
Emerging market equity funds took in $2.2 billion for the week while their developed markets equity counterparts suffered collective outflows of $4.3 billion.
EMERGING MARKETS
Global emerging market (GEM) equity funds saw a strong start to the year, with $16.9 billion since the start of October, nearly twice the $9.4 billion committed for equity funds focused on Asia ex-Japan, Latin America and Europe, Middle East and Africa (EMEA).
Emerging Europe regional equity funds snapped a three-week losing run and flows into Africa regional equity funds hit a 94-week high.
Asia ex-Japan equity funds also posted modest inflows but equity funds focused on China surrendered $197 million for the week, their second consecutive week of outflows.
India equity funds took in fresh money for the fifth straight week.
GLOBAL FUNDS U.S. equity funds, which suffered record outflows in the last two years, started 2010 by posting outflows of $5.2 billion, mostly from investors pulling out of large- and small-cap Exchange Traded Funds.
Japan equity funds took in $191 million in their fourth weekly gain in five weeks while investors pulled $178 million from Europe-focused equity funds.
Global equity funds, one of the two major diversified EPFR-tracked fund groups that invest primarily in developed markets, took in a net $780 million while the other diversified fund group, Pacific equity funds, posted modest inflows.
All bond funds tracked by EPFR absorbed a net $3 billion, while all equity funds saw outflows of $3.2 billion.
SECTOR FUNDS
Commodity sector funds, which took in a record $17 billion last year, saw their four-month winning streak come to an end in early 2010 despite generally higher base metal and soft commodity prices.
Investors pulled a 62-week high of $422 million out of the fund group, removed another $330 million from financial sector-focused funds, and hit consumer goods sector funds with redemptions amounting to $276 million.
Investors put $121 million into funds focused on the energy sector amd $179 million into property sector funds.
Commitments to technology sector funds hit a 23-week high of $347 million while healthcare and biotechnology sector funds saw their eighth straight winning week to take in $233 million.
FIXED INCOME FUNDS
Maintaining the momentum from a record 2009, U.S. and global bond funds took in $1.3 billion and $1.1 billion respectively in the week ending Jan. 6.
High-yield bond vehicles took in $452 million while investors who put $108 million into emerging markets bond funds appeared to favour funds investing in hard currency debt over those focused solely on local currency denominated issues. (Reporting by Sebastian Tong; editing by Stephen Nisbet)