Monthly inflows into equity funds exceed $100bn

Monde
On the 12/07/20 at 8:02AM

by

Jean-Loup Thiébaut

Equity funds have just passed the symbolic barrier of $100bn for the first time in net monthly inflows, according to the latest figures from Flow Show, BofA Global Research’s weekly flow report.

With $9.7bn in net new cash between 26 November and 2 December, on top of three previous weeks of very heavy inflows, equity funds have received a net $115bn since 5 November. This was driven in particular by emerging market equity funds, which received a record $25bn in inflows on the month.

Conversely, gold funds, which had been on the inside track since the pandemic began, have seen their momentum reverse, with total outflows of $9bn since mid-November.

Equity funds inflows were mainly into emerging funds (+$5.6bn) and European funds (+$2bn), while US funds suffered $6.1bn in outflows. This negative momentum on the world’s top market was driven by large cap funds (-€7.6bn) and growth funds (-€1.4bn), while value and small cap funds had a quiet week with, respectively +€0.2bn and +€1.9bn in inflows.

Bond funds had net inflows of $10.2bn, mainly in investment grade (+$5.8bn), emerging debt (+€2.8bn) and inflation-linked bond (+€2bn) funds. Money market funds suffered $7.4bn in net redemptions.