Emerging Markets Equity Fund flows slide further as oil prices plunge
The third week of April saw oil prices briefly drop – by some measures – into negative territory, driven there by the massive demand shock caused by the COVID-19 pandemic and by the standoff between Saudi Arabia and Russia over output that delayed adjustments to global supply. Investors responded by pulling money out of North American and Emerging Markets Equity Funds, pumping record-setting sums into Energy Sector Funds and boosting flows into Money Market Funds for the first time since the third week of March.
Overall, EPFR-tracked Equity Funds posted a collective net outflow of $7.2 billion during the seven days ending April 22, snapping a three-week inflow streak, and $393 million flowed out of Balanced Funds. Investors committed $1.1 billion to Alternative Funds, $10.7 billion to Bond Funds and $126.3 billion to Money Market Funds. In the case of Alternative Funds, the bulk of the headline number went to Leveraged Bear ETFs.
Equity Funds with socially responsible (SRI) or environmental, social and governance (ESG) mandates continue to plow their own furrow, recording inflows for the 15th time in the 16 weeks year-to-date. So far this year SRI/ESG Equity Funds have modestly outperformed all Equity Funds.
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