May 4 - Global equity funds attracted net new money for a sixth straight week through April 29, with investors responding to encouraging first-quarter corporate results even as concerns lingered about the Middle East conflict and rising oil prices.
Data from LSEG Lipper showed global equity funds drew a net $18.91 billion during the week, following a substantially larger $48.67 billion of inflows the prior week. The MSCI World Index reached a record high of 1,084.69 last week after a number of major U.S. technology companies and South Korean chipmaker Samsung Electronics posted strong results.
LSEG coverage of 525 MSCI World constituents indicated that roughly 72% of those companies surpassed analysts' average profit estimates for the first quarter, a statistic market participants cited as a primary driver of the equity flows.
Regional patterns were concentrated in Asia, where equity funds logged a record weekly net inflow of $10.82 billion. That total included $8.27 billion directed to Japanese funds and $2.31 billion into South Korean domestic funds. European equity funds took in $5.83 billion, while U.S. equity funds recorded a more modest weekly net inflow of $911 million.
Sector activity showed a clear tech preference, with the technology sector attracting a net $3.48 billion over the week. That pushed total tech inflows for the month to a net $22.9 billion.
Fixed income also remained in favor. Global bond funds extended their run of inflows to a fourth consecutive week, drawing a net $14.19 billion. Within that category, government bond funds received $3.07 billion - the largest weekly inflow for that group in three weeks - and high-yield bond funds attracted $2.44 billion.
In contrast, money market funds experienced their third straight week of net withdrawals, with investors pulling $36.5 billion. Precious metals-focused commodity funds were also out of favor, as investors redeemed a net $1.46 billion from gold and other precious metals funds, ending a four-week streak of inflows.
Emerging markets displayed mixed flows. Equity funds in emerging markets saw net outflows of $372 million after three weeks of gains, while emerging markets bond funds recorded a net inflow of $999 million, marking a fourth consecutive week of positive flows. The figures reported cover a universe of 28,889 funds.
Data note: Fund flow and performance figures are from LSEG Lipper and reflect activity through April 29 as reported for the week ending that date.