Global equity funds draw inflows for fifth week in a row

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LSEG data showed investors poured a net $3.28 billion into global equity funds during the week after $14.68 billion worth of net purchases in the previous week.

Investors held onto their view the Federal Reserve would reduce rates three times this year after the U.S. central bank maintained its outlook for 2024 rate cuts last week.

Personal consumption expenditures (PCE) data on Friday showing U.S. consumer prices are moderating reinforced this belief.

Regionally, Asian funds led with purchases of a net $6.01 billion, the most in eight weeks. U.S. funds also drew $2.6 billion but investors removed about $6.63 billion from European funds.

Industrials received $1.05 billion while the tech sector gained $1.24 billion, its eleventh weekly inflow in a row.

The healthcare sector faced $1.56 billion worth of net selling.

Bond funds attracted inflows for a 14th successive week, worth about $11.19 billion on a net basis.

Government bond funds received $1.9 billion, the largest weekly inflow in three weeks. Investors also purchased high yield and loan participation funds of $2.16 billion and $884 million, respectively.

Money market funds witnessed outflows of about $36.78 billion in a second straight week of net selling.

Among commodities, investors withdrew a net $586 million from precious metal funds in contrast to $1.39 billion of net buying in the previous week. Energy funds received a marginal $8 million worth of inflows.

Data covering 29,677 emerging market funds showed equity funds received $361 million, their first weekly inflow in four weeks. Bond funds saw $804 million worth of net selling, the second weekly outflow in a row.