In the week to 11 January Municipal Bond Funds posted their biggest weekly inflow in over two years, while flows into Global Bond Funds hit a 31-week high and High Yield Bond Funds took in nearly $2bn.
Even Europe Bond Funds snapped a 17-week losing streak, as the total amount of money absorbed into EPFR Global-tracked Bond Funds during the week hit an 18-month high of $6.39bn.
Analysts at EPFR Global said the main motivation for the influx into bond funds was the fact investors had digested forecasts for the coming year in which the phrase ‘muddle through’ appeared early and often.
Yet equity funds also saw inflows of over $6bn, with Emerging Market Equity Funds accounting for $1.84bn of that weekly total.
EPFR Global said actively managed funds had attracted fresh money for the first time since early November and investors’ appetite for Asia, Australia and Indonesia had perked up again.
Within the emerging market regions, GEM Funds and Asia ex-Japan Funds were in favour, but Brazil Equity Funds extended their current outflow streak to five-weeks.
