Investors plow US$36.4b into global equity funds in week

Global equity funds attracted inflows for the 11th week running in the week to March 17, helped by hopes of unceasing low interest rates, after the U.S. Federal Reserve signalled its intent to keep rates near zero until at least 2024, Reuters reports.

Investors poured about US$36.46 billion into equity funds in the week, the biggest inflow in five weeks, Refinitiv Lipper data showed.

MSCI’s benchmark for global equity markets climbed 1 percent this week but reversed track on Friday, pressured by a surge in U.S. bond yields.

Among equity funds, technology funds received inflows of US$2.19 billion in the week to March 17 after an outflow of US$524 million the previous week, with investors scooping up heavily battered tech stocks at cheaper valuations.

On the other hand, lower oil prices affected the energy sector, which showed an inflow of US$184.9 million, down more than 60 percent from the previous week.

However, alternative energy funds that primarily invest in solar, wind and water companies registered inflows of US$1.4 billion, the highest in seven weeks.

Global bond funds, meanwhile, achieved inflows of US$8.7 billion, mainly owing to net purchases in shorter-term bonds and inflation-linked bonds.

Global corporate bonds suffered an outflow of US$960 million in the week, the fourth in as many weeks.

Global recovery hopes also lured inflows for cyclicals such as industrials, banks and miners.