Equity investors find sectors more compelling the geography
The Bond Fund bandwagon rolled on during the third week of the New Year, extending a run that has seen them post 55 straight weeks of inflows that total $775 billion. Although flows have moderated since the first week of the year, when this fund group absorbed a record-setting $23 billion, were they to maintain their current weekly average for the rest of the year total inflows would exceed $900 billion.
EPFR-tracked Equity Funds, meanwhile, posted consecutive weekly inflows for only the sixth time since the beginning of 3Q19. In geographic terms, the bulk of the fresh money went to the two biggest diversified groups, Global and Global Emerging Markets (GEM) Equity Funds. Investors showed more conviction when it came to sectors, with four of the 11 major groups attracting over $1 billion, and they remain enamored of funds with socially responsible (SRI) or environmental, social and governance (ESG) mandates which chalked up their third weekly inflow record since the beginning of October.
Overall, investors steered a net $8.4 billion into Equity Funds during the week ending January 22 with half of that going to SRI/ESG Equity Funds while flows to Dividend Equity Funds hit a YTD high. Balanced, Money Market and Bond Funds absorbed $443 million, $11.2 billion and $16.2 billion respectively.
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