US equity funds benefit as risk appetite slips in mid-September

The question of when the vast sums spent by major technology companies on artificial intelligence will translate into new revenue weighed on several fund groups during the first week of January, with Technology Sector Funds posting a third consecutive outflow for the first time since late February, US Equity Funds starting the New Year with an $18.9 billion outflow and both Korea and Taiwan (POC) Equity Funds experiencing above average redemptions.

The final week of December closed the books on a year that saw fund groups ranging from Europe Bond and Physical Silver to Cryptocurrency and Artificial Intelligence (AI) Funds set new full-year records. Investors also committed record-setting sums to Canada and Australia Equity and Bond Funds, Technology and Industrial Sector Funds, Physical Gold and Rare Earth Metals Funds and China Bond Funds.

Mainland China-mandated funds stood out during the week ending Christmas Eve, with China Equity Funds pulling in over $7 billion for the second week running and China Bond Funds setting a new weekly inflow record for the fourth time so far this year. The flows into China Bond Funds helped all Bond Funds post their biggest one-week total since EPFR started tracking them in 4Q01.