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Equity Funds pick up a retail tailwind for Thanksgiving
Retail flows to EPFR-tracked Equity Funds during the week ending Nov. 25 hit their highest level since late 1Q06 as the prospect of effective anti-COVID-19 vaccines and a return to political normality in the New Year propelled benchmark US indexes to fresh record highs. US Equity Funds recorded their first retail inflow since mid-September and their biggest since early June, Global Equity Funds posted their 33rd retail inflow in the past 35 weeks and retail investors committed fresh money to China Equity Funds for the 23rd straight week.
These Equity Funds are on track to challenge the monthly inflow record they set in January 2018, when the synchronized global growth narrative prompted investors to move off the sidelines. In addition to the revived retail flows, this group is also benefiting from the strong investor appetite for exposure to the socially responsible (SRI) or environmental, social and governance (ESG) themes. Funds with these mandates posted their second record inflow month-to-date as their year-to-date total climbed to $143 billion.
Overall, Equity Funds recorded a collective inflow of $34 billion during the week ending Nov. 25 while Money Market Funds absorbed $4 billion and Bond Funds $9 billion. Investors pulled a net $58 million out of Alternative Funds and $1.8 billion from Balanced Funds.