Global equity funds secure biggest inflows in two years in week ended February 10

A picture illustration shows U.S. 100 dollar bank notes taken in Tokyo

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.

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.

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.

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