Fund flows benefit US equities

Water_tapInvestors accelerated flows into equity funds from bond funds in the week ending December 15 in light of uncertainty about Eurozone debt, US municipal finances and Chinese monetary policy.

EPFR Global-tracked bond funds posted their biggest outflow since October 2008, while equity funds collectively took in over $10bn (€7.58bn) for the second week running.

Flows into equity funds were paced by developed markets fund groups with US Equity Funds to the fore in total USD terms. Emerging Market Equity Funds did extend their current inflow streak to 29 straight weeks, and remain firmly on course to set a new yearly record, but the amount they absorbed was significantly lower than their year-to-date weekly average of over $1.8bn.

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