Pendulum swings towards bond funds

growthBond funds posted their biggest weakly inflow last week since May in a turnaround from January 2013 when flows into equities dominated.

European bond funds recorded their biggest inflows for over eight months, according to EPFR Global data.

Japan and European equity funds continued to see inflows, though broader equities saw outflows.

“In contrast to the first full week of 2013, when record setting flows into funds EPFR Global-tracked emerging market and global equity kicked the Great Rotation narrative into high gear, the New Year kicked off with bond funds posting their biggest weekly inflow since early May while equity funds recorded modest net redemptions,” EPFR says.

Overall, bond funds took in a net $5.2 billion (€3.8 billion) while equity funds posted a collective outflow of $427 million.

Money market funds took in nearly $23 billion, lifting total inflows over the past three weeks past the $65 billion mark.

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