Global investors remain risk averse amid growth concerns

Global investors continued to be risk averse in late August through early September amid growing trepidation about a discernible slowdown in key regions such as the US, China and the euro-zone, according to the latest funds flow data from EPFR Global. As has largely been the case since mid-June, emerging markets equity funds fared better than their developed markets counterparts while bond funds fared best of all, EPFR said.



Global bond funds absorbed a net US$3.83bn in the week ended Sept. 1, according to the US-based research firm. Worldwide stock funds lost US$6.87bn, the most in 14 weeks. Investors also pulled out US$4.11bn out of Money Market Funds and US$1.08bn from Balanced Funds, EPFR said. On the other hand, emerging market debt and equities extended their streak of inflows to 14 weeks.

Global Emerging Markets (GEM) Equity Funds accounted for the big chunk of the modest US$250mn absorbed by emerging markets equity funds. Global Bond Funds had their best week since early May while redemptions from the Global Equity Funds climbed to a 14-week high, shows the latest EPFR data.

The better macroeconomic data that surfaced late last week appeared to boost Europe Equity Funds and Global Sector Funds, the Cambridge, Massachusetts-based EPFR said. Combined flows into the sector funds hit their highest level in nine weeks, EPFR said, adding that most funds linked to Commodity, Energy, Financial and Real Estate recorded solid inflows.