Policy risks and investor fears about Greece's debt problems caused investors to pull money out of Chinese and European equity funds last week, while global bond funds raked in the biggest inflow in more than a decade, EPFR Global said on Friday.
Uncertainty about China ahead of its annual parliament session did not steer investors away from emerging market stocks or bonds, though the pace of inflows was not as robust as last year in the week to March 3. Among developed market equity funds, Japan-focused funds received new money for a 10th straight week.
EMERGING EQUITY FUNDS:
This fund group had a third straight week of inflows, with a relatively modest $240 million flowing into the funds. Year-to-date net inflows have grown to $2.2 billion.
Asia ex-Japan, Latin America and EMEA Equity Funds had net inflows ranging from $42 million to $169 million. China equity funds had $17 million moving out of the door, while BRIC equity funds enjoyed inflows. The year-to-date average weekly inflow into BRIC funds however is less than half of the $190 million averaged in the fourth quarter of 2009.
DEVELOPED MARKET EQUITY FUNDS:
These funds had $2.8 billion in new money in the latest week. Europe equity funds were the only group in the developed market class to suffer outflows, with lingering fears about the impact of Greece's crisis. US equity funds received small net inflows, while Japan equity funds saw year-to-date net inflows rise to nearly $2 billion.
COMMODITY SECTOR FUNDS:
This sector literally continued to be a hot commodity among investors. The fund group took in $693 million in net inflows in the latest week, the highest in 13 weeks.
GLOBAL BOND FUNDS:
The fund group had the biggest single-week inflow of new money since EPFR began tracking them in 2000, at $2.6 billion. Year-to-date inflows have grown to $16 billion. US bond funds have had a 61-week string of inflows, with inflows dominated by investment in short-term debt.