The third week of July saw European leaders agree on a $830 billion ‘rescue fund’ and the Nasdaq Index
hit a new record high while US lawmakers negotiated the outlines of what would be a fifth fiscal package to combat the impact of the COVID-19 pandemic. But these developments drew a stronger reaction from fixed income investors, with EPFR-tracked Bond Funds
posting their third largest weekly inflow year-to-date – and on record -- while Equity Funds
collectively chalked up their fourth outflow in the past six weeks.
groups dedicated to popular sectors continue to attract fresh money, as do those with socially responsible (SRI) or environmental, social and governance (ESG) mandates. But, as was the case during the second quarter, the list of top money magnets quarter-to-date is dominated by fixed income and cash management fund groups. However, two Equity Fund
groups that were in the bottom 10 during 2Q20, Global
and China Equity Funds
, are currently in the top 10 QTD.