US and EM equities see inflows

Mixed-chartThe eurozone debt saga saw over $11 billion (€7.9 billion) flow into US equity and bond funds during the week ending November 9.

The flows tracked by EPFR Global also saw US money market funds absorb $23.8 billion despite short-term yields in the 0.02% range.

EPFR described the inflows as “safe haven flows” resulting from “investors spooked by the latest twist in the eurozone debt crisis”.

The data firm added: “The turmoil surrounding Italy and Greece highlighted the better fundamentals and superior growth prospects of many emerging markets, with China front and centre.”

China equity funds ended the week with their biggest inflow since the third week of of the second quarter of 2010. Bric (Brazil, Russia, India and China) equity funds broke an outflow streak that stretched back to mid-April and flows into Asia ex-Japan equity funds hit a 20-week high.

Risk appetite, while clearly waning, has yet to sink to mid-August levels, EPFR said. High yield bond funds posted another solid week of inflows, flows into technology sector funds climbed to their highest level in nearly six months and emerging Europe equity funds took in fresh money for the first time in 26 weeks.

Overall, EPFR Global-tracked equity funds posted net inflows of $9.59 billion - a 31 week high - while bond funds took in $4.07 billion. Europe money market funds had their best week in percentage of assets under management terms since the second quarter of 2008.

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