Investors shun bonds, U.S. and emerging equities in Q3 -EPFR
By Sujata Rao
LONDON Oct 2 (Reuters) - Investors, spooked by Chinese economic turmoil and signs of weaker world growth, pulled a combined $75 billion from U.S. and emerging market equity funds in the third quarter while parking $100 billion in money market vehicles, data showed.
In data released late on Thursday, Boston-based fund tracker EPFR Global said European and Japanese funds were the only equity classes to receive net inflows between July and September, most likely motivated by the possibility of more central bank money-printing.
"Mutual fund investors continued to pin what faith they have on markets and asset classes supported by robust quantitative easing programs," EPFR said.
While the U.S. Federal Reserve held off raising interest rates in September it could move in December, despite the increasingly fragile outlook for world growth, especially in China and emerging economies.
Funds pulled $35.2 billion from dedicated U.S. equity funds, according to EPFR.
European equities continued in favour however, taking $31.3 billion, already amounting to 190 percent of the full-year record set in 2013. EPFR added also that Japan equity inflows of $25 billion were the biggest quarterly figure since it started tracking them at the start of 2002.
Japanese and European equities have absorbed $56.4 billion and $104.5 billion year-to-date, well above last year's levels, the data shows. U.S. outflows are running at $138 billion, dwarfing the $32 billion received last year.
Within Europe, investors appeared worried by the impact of the Volkswagen emissions scandal on German companies. Data showed big flows directed towards Italian and Dutch equity funds towards the end of the third quarter, BNP Paribas noted, citing the data. Continuación...