The latest EPFR Global fund flows data showed equity funds as a whole posted outflows in the week to 22 February, with investors taking profits from rising markets.
The Dow Jones flirted with the 13,000 level during the week, Greece seemed closer to securing the bailout needed to avoid a default and China cut the RRR for the second time since November – all aiding investors’ positive sentiment.
EPFR Global said: "While quick to take profits from good news, they [investors] were not shy about steering money into riskier asset classes. Mortgage backed bond funds enjoyed record setting inflows, high yield bond funds took in another $1.3bn, flows into alternative funds hit their highest level in over four years and frontier markets equity funds had their best week since early July."
As an asset class, bond funds pulled in over $5bn for the fifth consecutive week, taking year-to-date inflows up to $50.9bn.
"Riskier, more rewarding fund groups again claimed the biggest share of the latest inflows," EPFR Global said, pointing to mortgage backed, high yield and emerging market bond funds.
