Global equity funds see higher inflows boosted by strong earnings -Lipper

(Reuters) – Global equity funds lured inflows for a third straight week in the week to Aug. 11, as strong corporate earnings and positive economic data from the United States boosted sentiment.

FILE PHOTO: Dividers are seen inside a trading post on the trading floor as preparations are made for the return to trading at the New York Stock Exchange (NYSE), May 22, 2020. REUTERS/Brendan McDermid/File Photo

According to Lipper data, global equity funds attracted inflows of $10.12 billion, a 12% increase over the previous week.

(GRAPHIC: Fund flows into global equities bonds and money markets – )

European equity funds had the major share of the inflows, receiving $5.6 billion, while U.S. equity funds obtained $2.7 billion.

About 69% of global firms have beaten analysts’ profit estimates in the second quarter, posting an average growth of 143%, with cyclical sectors such as industrials, energy and consumer discretionary firms leading the earnings recovery, according to Refinitiv data.

OCBC said the strong U.S. economic data – with consumer price increases slowing and weekly jobless claims dropping – improved sentiment, raising inflows into equity funds in the week.

Among equity funds, financial sector funds attracted $1.05 billion, while the tech sector had inflows of just $359 million.

(GRAPHIC: Global fund flows into equity sectors – )

“Financials reported the largest inflows last week indicating a positive outlook by the market on continued and sustained economic growth,” the OCBC report said.

Global bond funds received a net $12.3 billion, which was a 14% drop from the prior week, marking improving risk sentiment among investors.

Global money market funds saw a 66% drop in their weekly inflows to $12.6 billion.

(GRAPHIC: Global bond funds’ flows in the week ended Aug 11 – )

Among commodity funds, precious metal funds faced outflows of $280 million as gold prices slumped to a more than a four-month low this week.

An analysis of 23,770 emerging market funds showed investors bought a net $736 million in equity funds, but sold $447 million in bond funds.

(GRAPHIC: Fund flows into EM equities and bonds – )

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