* Global equity funds see $8 bln in inflows, most going to
* High yield bond funds attract $700 mln in week
* Emerging market stocks still hot, bonds less so
HONG KONG, Sept 10 Equity funds posted the
biggest weekly inflows in more than a month in early September,
reflecting some comfort with the global economic outlook,
though fresh cash allocations showed the limits of risk taking,
EPFR Global data showed on Friday.
Stock funds tracked by the fund research firm absorbed an
aggregate $8.43 billion, during the week to Sept. 8, the most
in six weeks. Bond funds also saw new money, taking in $4.13
Despite the evidence of investors' money being put to work,
money market funds, an equivalent of cash, saw inflows for the
fifth time in the past seven weeks.
U.S. exports and manufacturing activity have had
surprisingly positive readings, improving the confidence of
economies and companies in the supply chain. However, consumer
spending and employment remain weak and appetite for riskier
assets may remain suppressed until they also show some
EMERGING MARKET EQUITY FUNDS
Confidence in emerging markets has been a constant in the
post-financial crisis world.
This fund group in aggregate had $1.87 in inflows in the
latest week, with Global Emerging Market funds extending their
inflow streak to 15 weeks.
Latin America-focused funds did the best, attracting a
25-week high of $190 million.
Asia ex-Japan and Europe, Middle East & Africa funds saw
DEVELOPED MARKET EQUITY FUNDS
U.S. equity funds chalked up weekly inflows of $6 billion,
accounting for three quarters of global equity inflows, driven
by buying of large cap ETFs, mid cap blended funds and value
However, year-to-date, U.S. equity funds have had net
redemptions of $30.3 billion.
Europe equity funds had inflows of more than $1 billion,
though year-to-date outflows still total $11.6 billion.
Japan saw small outflows of $101 million.
The picture was mixed at a sector level.
The cyclical energy sector took in $252 million, bringing
2010 inflows to $1.6 billion, the third highest after commodity
and consumer goods sector funds.
However, defensive sectors also did well. Flows into
healthcare funds were at a five-week high and utilities sector
funds had inflows for the eighth time in the past nine weeks.
Emerging market bond funds saw inflows but they were the
lowest since early June. Inflows into emerging market local
currency bond funds slipped to a 14-week low.
Tolerance for risk was evident in junk bonds. High yield
bond funds had $700 million in inflows for the week, bringing
year-to-date inflows up to $10.6 billion.
Global and U.S. bond funds pulled in $1.31 billion and
$2.01 billion, respectively.
Flows into U.S. bond funds were influenced heavily by
buying of municipal debt as investors search for assets that
offer reasonable yields and some protection from the tax
increases expected in 2011.
(Reporting by Kevin Plumberg; Editing by Tomasz Janowski)