Weekly inflows in global money market funds hit a 6-month high

– Global money market funds obtained massive inflows in the week to April 27 as investors rushed to safer assets on concerns over economic slowdown, surging inflation and the war in Ukraine.

According to Refinitiv Lipper, money market funds garnered a net $51.4 billion in their biggest weekly purchase since Oct. 27.

Graphic: Fund flows: Global equities bonds and money market – https://fingfx.thomsonreuters.com/gfx/mkt/byvrjnxagve/Fund%20flows-%20Global%20equities%20bonds%20and%20money%20market.jpg

The MSCI world equity index dropped to a 13-month low this week, hit by fears over aggressive U.S. Federal Reserve tightening and its impact on global growth. Global equity funds witnessed withdrawal worth $12.42 billion, which marked a third weekly net selling in a row. The U.S. and European equity funds had outflows of $10.55 billion and $3.52 billion, respectively. However, Asian funds drew $1.43 billion in net buying.

By sector, financials, consumer discretionary and tech lost $2.51 billion, $0.94 billion and $0.63 billion, respectively, in net selling, while consumer staples gained $1.18 billion in net buying.

Graphic: Fund flows- Global equity sector funds – https://fingfx.thomsonreuters.com/gfx/mkt/lbvgnywxqpq/Fund%20flows-%20Global%20equity%20sector%20funds.jpg

Global bond funds had a fourth weekly outflow in a row, amounting to a net $9.72 billion.

Global high yield funds lost $2.1 billion, and short- and medium-term bond funds forgo $4.08 billion in a 16th consecutive week of outflows. However, government bond funds obtained net inflows of $1.15 billion.

Graphic: Global bond fund flows in the week ended April 27 – https://fingfx.thomsonreuters.com/gfx/mkt/egpbkelxkvq/Global%20bond%20fund%20flows%20in%20the%20week%20ended%20April%2027.jpg

Commodities funds’ data showed precious metal funds had their first weekly outflow in 15 weeks, worth $436 million, while selling continued in energy funds for a sixth week, valuing $64 million. An analysis of 24,273 emerging market funds showed weekly net selling in both equity and bond funds surged to at least a six-week high of $1.97 billion and $2.5 billion, respectively.

Graphic: Fund flows: EM equities and bonds – https://fingfx.thomsonreuters.com/gfx/mkt/lgvdwgxzmpo/Fund%20flows-%20EM%20equities%20and%20bonds.jpg