Equities And Bonds See Inflows As QE Tapering Fears Subside

As weeks of market volatility and dynamic fund flow movements culminated in the confirmation of QE tapering, investors guided funds back into equities focusing on DM equity funds in particular. On the bond markets, investors played it safe by directing more funds to safe havens like U.S. bond funds as opposed to EM debt funds.

A recent report from EPFR Global highlighted that  some inflows are coming back to equities and bonds, with US$171mn (0.07%AUM) outflows from Asia and improvement in foreigners’ buying.

Some Inflows Coming Back to Equities and Bonds

In the week ended 7/3/2013, EPFR saw a US$2.1bn inflow into bond funds...