Flows into EPFR-tracked Emerging Markets Equity Funds during the third week of January climbed to their highest level since mid-1Q21 as investors positioned themselves for China’s much anticipated economic rebound and, the anti-inflation rhetoric of the Federal Reserve and European Central Bank (ECB) notwithstanding, an early end to the current interest rate cycles in the US and Europe. Investors also steered $2.5 billion – a 101-week high – into Emerging Markets Bond Funds.
A final look to EPFR-tracked equity funds in December 2022, with alternative, balanced, bond and money market funds experiencing significant redemptions as investors grapple with a highly uncertain outlook for the first half of next year.
Overall, the second week of December 2022 saw all Equity Funds record a collective inflow of $17.9 billion while Bond Funds absorbed $2.3 billion.
EPFR-tracked Equity Funds extended their longest run of outflows since 3Q19 during the week ending May 18 as slowing global growth, tighter monetary policy in the US, war in Ukraine and widespread lockdowns in China kept investors on the defensive. Bond, Money Market, Balanced and Alternative Funds also recorded outflows going into the second half of May.
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.
With Covid regaining center stage, much of the US on holiday and many central banks rummaging around in their inflation containment toolkit, flows to most EPFR-tracked fund groups were understandably muted during the week ending November 24.
Fixed income markets are abuzz about the spectacular demand for new green bonds. Flows into fixed income funds with socially responsible investing (SRI) or environmental, social and governance (ESG) mandates have soared, whereas those tracked by EPFR have seen their Assets under management increase sevenfold since the beginning of 2019.
From a fund flow perspective, the week ending Nov. 10 saw groups and themes that have fared well for most of 2021 continue to attract fresh money. Meanwhile, four out of five US companies that have reported third quarter earnings exceeded consensus expectations.
The twin specters of inflation and the planet running hotter occupied investors going into November as the UN climate summit, COP26, got underway and central bankers in the US and UK met. SFlows to EPFR-tracked funds during the week ending Nov. 3 reflected the general focus on these themes.
Expectations for economic growth, US job creation and the transitory nature of inflation all took a knock during the second week of October as supply chain issues and rising energy prices continue to bite.
