Global money market funds attracted large inflows in the week to September 22 as hopes the Federal Reserve may soon begin to ease its stimulus measures, prompting investors to be cautious.
Troubles at asset group China Evergrande also dented sentiment, raising concerns about spillover risks to other economies.
Investors bought a net $30.25 billion in global money market funds in the week, their biggest weekly net purchase since Aug.
In its latest policy statement on Wednesday, the US central bank indicated that it could begin reducing its monthly bond purchases as early as November and that interest rate hikes could also happen faster than expected. Global equity funds faced modest outflows of $5 million in the week. US equity funds saw net sales of $2.85 billion, while Asian and European equities saw net purchases of $2.93 billion and $0.73 billion. Funds from the real estate sector saw an outflow of $720 million.
Industrials and consumer staples sector funds also saw outflows of over $600 million, while consumer discretionary funds attracted a net $442 million.
Global bond funds saw inflows for the ninth consecutive week, though buying was down 24 percent from the previous week at $8.92 billion. Global government bond funds netted $2.2 billion, the largest in four weeks, while inflation-protected bond funds attracted $680 million. However, the high yield funds faced an outflow of $154 million.
OCBC said in a note that net inflows decreased as investors reiterated fears over the Fed’s decision to reduce bond purchases through the end of the year.
Among commodity funds, investors bought precious metals funds for the second week in a row, netting a net $172 million, while they sold energy funds for the sixth week in a row. An analysis of 23,900 emerging market funds showed that investors sold $888 million in bond funds and $381 million in equity funds, their first weekly net sales in four weeks.
This News Originally From – The Epoch Times