Global investors pursue safer money market and bond funds over virus issues – Lipper



Traders work on the floor of the New York Stock Exchange (NYSE) in New York, United States, July 13, 2021. REUTERS / Brendan McDermid

Aug 6 (Reuters) – Global investors fled to safer money market and bond funds in the week to Aug 4 as the fast-spreading Delta variant of COVID-19 dampened hopes of a larger recovery rapid after the pandemic, with some economic data already showing signs of slowing.

Lipper’s data showed that global money market funds attracted inflows of $ 36.68 billion, the most in 10 weeks.

Global bond funds received $ 14.6 billion in the week, double the inflows from the previous week.

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Bond prices rallied around the world, with the 10-year US Treasury yield hitting a six-month low this week.

Data released during the week showed that growth in the U.S. manufacturing sector slowed for the second consecutive month in July, while the U.S. private sector payroll increased less than expected. Read more

European bond funds attracted $ 7.4 billion, while US bond funds received $ 6.7 billion. Asian bond funds also attracted small inflows.

On the flip side, global equity funds received $ 9.04 billion, helped by some optimism about strong earnings reported by a majority of US companies in the second quarter.

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However, concerns about the virus topped stock inflows, with purchases 47% lower from the previous week.

Chinese equity funds registered entries for the first time in seven weeks, as concerns over China’s efforts to impose tighter regulations on its publicly traded companies eased slightly.

Across all sectors, tech funds netted $ 1.46 billion, while consumer discretionary and healthcare funds attracted over $ 500 million each.

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Among commodities funds, precious metals funds attracted investments worth $ 617 million, their first inflow in four weeks. Energy funds had exits for a second straight week.

An analysis of 23,738 emerging market funds showed that investors bought net $ 2.8 billion in equity funds, their largest purchase in more than four months, and sold $ 190 million in equity funds. ‘obligations during the week.

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Report by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; edited by Vinay Dwivedi

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