qe vigour wears off move back to bonds

Bond funds posted their second-biggest weekly inflow so far this year in the week to 10 October as muted global growth forecasts and weaker corporate earnings took their toll on investors’ risk appetites.

qe vigour wears off move back to bonds


Meanwhile, the surge in equity fund purchases witnessed after Federal Reserve Chaiman, Ben Bernanke’s, QE3 announcement last month has failed to take hold, with US equity funds posting net redemptions for the third week running.

Despite this, European equities which have been out of favour for the majority of this year posted inflows for only the sixth time in 41 weeks, which EPFR Global said was due to investors’ belief in the European Central Bank’s willingness to buy short term sovereign debt.

Overall, EPFR Global-tracked bond funds absorbed $8.22bn, taking year-to-date inflows up to the $348bn mark. On the other hand, equity funds posted outflows of $1.23bn, with emerging markets equity funds and Latin America equity funds two of the only groups to buck this trend.



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