Global money market funds have seen their highest inflow in a year: Lipper

© Reuters. This illustration shows Saudi rial, yuan, Turkish lira, pound, US dollar, euro, and Jordanian dinar banknotes

(Reuters) – Investments in global money market funds rose to their highest level in a year in the week ending April 28. This was due to concerns about rising coronavirus cases and the possibility that the Federal Reserve could scale back its huge quantitative easing program.

Global money market funds received $ 69.16 billion in net inflows, the largest since April last year, data from Refinitiv Lipper showed.

Global equity funds, on the other hand, saw net outflows of $ 15.3 billion on concerns about the speed of a recent price rally and caution about the earnings results of some top companies.

The fund flows into global reverse convertibles and money markets

US equity fund outflows were $ 22.2 billion. Asian equity funds saw modest inflows of $ 0.76 billion, although Japan and India saw outflows of $ 1.2 billion and $ 296 million, respectively, amid concerns about local spikes in coronavirus cases.

European equity funds posted $ 11.17 billion in inflows, helped by strong corporate earnings and optimism about an economic recovery from the COVID-19 pandemic.

The global fund flows into equity sectors https://fingfx.thomsonreuters.com/gfx/mkt/azgvoxoawpd/Global%20fund%20flows%20into%20equity%20sectors.jpg

Meanwhile, global bond funds saw their lowest inflow in four weeks at $ 10.3 billion.

Global Bond Fund Inflows for the Week Ending April 28th https://fingfx.thomsonreuters.com/gfx/mkt/xlbpgekjopq/Global%20bond%20funds%20flows%20in%20the%20week%20ended%20April%2028.jpg

In commodities, precious metals funds saw their first net inflow in 12 weeks of $ 1 million, while energy funds saw outflows for a second straight week.

The fund flows into EM stocks and bonds https://fingfx.thomsonreuters.com/gfx/mkt/oakpewbezpr/Fund%20flows%20into%20EM%20equities%20and%20bonds.jpg

Analysis of 23,873 emerging market funds found equity funds posted net income of $ 657 million, well above the previous week’s $ 25 million, while bond funds saw outflows of $ 181 million.

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