Feb 14 (Reuters) - Global equity funds attracted
significant inflows in the week ending February 12, after a Bank
of England rate cut drove a rally in European shares, although
caution over U.S. President Donald Trump's tariff policies
limited investor activity.
LSEG Lipper data showed investors bought global equity funds
worth a net $5.66 billion during the week, reversing their $2.47
billion in net sales the prior week.
The pan-European STOXX 600 index hit new records on
five consecutive days this week, driven by strong earnings from
companies such as drugmaker AstraZeneca ( AZN ), copper producer
Aurubis, and financial services group Societe Generale
.
European equity funds attracted a hefty $6.03 billion in
inflows during the week, following net purchases of about $3.3
billion in the previous week.
Asian funds attracted a net $1.46 billion while U.S. funds
recorded net sales of $2.25 billion.
Global sectoral equity funds also saw a net $258 million
worth of sales, the first weekly outflow in six weeks. Consumer
discretionary and healthcare funds with $987 million and $645
million, respectively in net sales, led the weekly outflows.
Global bond funds were popular for the seventh week in a row
with a net $10.36 billion in purchases.
Global short-term bond funds received $6.22 billion, the
highest in five weeks. Loan participation funds and high yield
bond funds also experienced robust inflows of $1.3 billion and
$1.2 billion, respectively.
Investors, meanwhile, pumped $20.1 billion into money market
funds following net purchases of about $75.13 billion the week
before.
In the commodities space, demand for gold and other precious
metals funds jumped to the highest in four and a half months as
investors poured $1.41 billion into these funds. Energy funds
also drew a marginal $29.19 million in inflows.
Investors in emerging market equity funds were sellers for a
14th consecutive week as data covering 29,627 of these funds
showed outflows of $1.11 billion. Conversely, bond funds added a
net $695 million, marking the sixth consecutive weekly inflow.