Investors pumped $18.62 billion into global equity funds during the week

Global equity funds attracted investment inflows for the twelfth consecutive week through August 12, buoyed by optimism about a strong earnings season and data showing weaker-than-expected growth in US jobs and declining inflation, which eased expectations for Federal Reserve interest rate hikes.

LSG data showed that investors pumped a net $18.62 billion into global equity funds during the week, slightly surpassing the net inflows of $17.27 billion in the previous week.

The MSCI World Equity Index, which hit a record high of 1,163.05 points last Wednesday, rose 2.85% last week, posting its best weekly performance since April 17, supported by strong results from artificial intelligence-related companies such as Caterpillar and Palantir.

Regionally, European equity funds attracted $13.52 billion, marking their largest weekly net inflow since July 8. US and Asian equity funds recorded inflows of $2.58 billion and $4.13 billion, respectively.

Conversely, investors withdrew approximately $1.7 billion from technology sector funds, ending a six-week streak of net inflows. However, investors pumped $1.6 billion into gold and precious metals equity funds, and $609 million into basic consumer staples sector funds.

Weekly net inflows to bond funds rose to a four-week high, reaching $18.01 billion. Short-term bond funds, euro-denominated bonds, government bonds, and loan participation funds saw strong demand, attracting inflows of $4.45 billion, $2.57 billion, $2.24 billion, and $1.06 billion, respectively.

Money market funds also attracted net inflows of $28.41 billion, continuing their inflow streak for the second consecutive week.

Regarding commodity funds, investors pumped a net $2.62 billion into gold and other precious metals funds, continuing net buying for the fifth consecutive week.

Meanwhile, energy funds recorded their first weekly inflows in three weeks, amounting to $434 million.

Data covering 28,966 funds in emerging markets showed that equity funds attracted net inflows of $3.45 billion for the fifth consecutive week, while bond funds received net investments of $871 million.

US equity funds attracted investment inflows, with investors pumping a net $2.58 billion after net outflows of $1.36 billion in the previous week, according to LSG data.

The S&P 500 Index hit a record high of 7,816.70 points on Thursday, after US Department of Labor data showed stable producer prices in July, bolstering expectations that the Federal Reserve will keep interest rates unchanged next month.

The index gained approximately 4.13% this month, generally supported by a strong earnings season. About 85% of the 456 companies in the S&P 500 Index, for which data is available from the London Stock Exchange Group, reported quarterly earnings that exceeded analysts’ expectations.

US equity growth funds attracted $8.78 billion, their largest weekly net inflow since November 2024, while value funds recorded net inflows of $1.79 billion.

Conversely, investors withdrew a net $3.78 billion from sectoral funds, led by outflows of $4.62 billion from technology funds, after six consecutive weeks of net inflows. Financial funds also saw net outflows of $633 million.

Bond funds attracted net inflows of $9.4 billion during the week, their highest level in four weeks.

Investors allocated $2.98 billion to short-to-medium-term credit-rated investment funds, $2.07 billion to taxable domestic fixed-income funds, and $1.92 billion to short-to-medium-term credit-rated government and Treasury bond funds.

Money market funds recorded their second consecutive week of inflows, amounting to $13.92 billion.