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.
Equity Fund 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.