Evidence that inflation is falling and global growth is stalling gave EPFR-tracked Bond Funds a shot in the arm during the first full week of January. Ahead of December’s CPI number, which showed US inflation grew at a 13-month low of 6.45% in the final month of 2022, investors committed over $17 billion to all Bond Funds.
This blog will examine the impact the conflict between Russia and Ukraine has had on global energy markets and the calls investors have made during 2022.
Over $110 billion – a 131-week high – flowed into EPFR-tracked Money Market Funds during the week ending Jan. 4 as investors surveyed an investment landscape still being reshaped by inflation, tighter monetary policy and geopolitical forces.
The final week of 2022 saw EPFR-tracked Bond Funds post consecutive weekly outflows for the first time since mid-October, capping a year when the overall group smashed its previous outflow record as central banks scrambled to contain inflation running at multi-decade highs.
Behind the headline number, however, was a marked shift from active to passive management.
Flows and allocations to different sectors and sector-related fund groups over the past 14 months have been marked by conviction, record inflows – and sharp changes of direction. Learn how EPFR Data captures some significant thematic shifts, in our Sector rotation series.
Since the COVID-19 pandemic started accelerating in Italy in late February, European markets have tumbled. Almost all European stocks are in negative territory year-to-date irrespective of sector, industry, or country of origin. In terms of scale, the quarterly drop is the highest in 33 years, and the intensity of it is unusually high – more than 35% of the total market capitalization has been lost in only three weeks.