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Komfie Manalo, Opalesque Asia: Bond funds posted their second biggest weekly inflows year-to-date during the week ending October 10 on investors’ concerns over the risks posed to equities by global growth and weaker corporate earnings.
Data provider EPFR Global said that overall, the EPFR Global-tracked Bond Funds absorbed $8.22bn which took YTD inflows up $348bn mark while equity funds saw $1.23bn flow out. Money market funds took in $2.6bn as flows into Europe money market funds offset redemptions from their U.S. counterparts.
"The risks associated with aggressive quantitative easing include inflation, asset bubbles and razor thin returns on the safer fixed income classes. U.S. Equity Funds experienced net redemptions for the third week running, Technology sector funds had their worst week since late January and money market funds snapped a three week outflow streak," said the report.
It explained that the latest figures indicate that investors are confident that the European Central Bank’s willingness to buy short term sovereign debt has removed some of the risks of an immediate Eurozone break-up: for only the sixth time in the 41 weeks YTD both Europe equity and bond funds recorded inflows. Appetite for emerging markets assets also showed some resilience, in part because investors resumed their hunt for yield.
Bond fund sales across the globe are on an upward swing as business intelligence provide...................... To view our full article Click here
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