Global equity funds draw ninth weekly inflow in a row

Global investors stepped up purchases in equity funds in the week ended Nov. 27, encouraged by prospects of robust US growth under the Trump administration and boosted by cooling treasury yields.

Investors pumped a substantial USD 12.19 billion into global equity funds, a jump of 32% compared with about USD 9.24 billion worth of net acquisitions in the week before, LSEG Lipper data showed. It marked the ninth consecutive weekly inflow.

On Friday, global shares were on track for their best month since May, driven by optimism about strong US growth and the artificial intelligence investment boom, despite concerns over political turmoil and economic slowdown in Europe.

Last week, US President-elect Donald Trump’s appointment of fiscal hawk Scott Bessent as US Treasury Secretary raised market expectations of controlled debt levels in his second term, leading to a drop in Treasury yields.

Investors picked a significant USD 12.78 billion worth of US equity funds, extending net purchases into a fourth successive week. However, they withdrew USD 1.17 billion and USD 267 million out of Asian and European funds, respectively.

The financial sector witnessed robust demand as it drew USD 2.65 billion in net purchases, the fifth weekly inflow in a row. Investors also snapped up consumer discretionary, tech, and industrials sector funds totaling a hefty USD 1.01 billion, USD 807 million, and USD 778 million, respectively.

Global bond funds witnessed inflows for the 49th successive week. Investors poured USD 8.82 billion into these funds.

Corporate bond funds received a net USD 2.16 billion, the biggest weekly inflow in four weeks. Government bond funds and loan participation funds also witnessed notable purchases, totaling a net USD 1.9 billion and USD 1.34 billion, respectively.

At the same time, investors ditched USD 12.87 billion worth of money market funds in a second straight week of net sales.

The gold and precious metals funds gained a net USD 538 million, marking a 14th weekly inflow in 16 weeks.

Data covering 29,635 emerging market funds indicated that equity funds were out of favor for a fifth consecutive week with about USD 4.3 billion in net sales. Investors also divested bond funds to the tune of 2.58 billion, logging a sixth weekly net sales.

(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Gareth Jones)