Highest inflow recorded for global equity funds before Fed announcement

By IVCPOST Staff Reporter

Sep 20, 2013 07:02 AM EDT

With investors putting their money in stocks in anticipation of the tapering from the US Federal Reserve, global equity funds recorded the highest inflows in the week ending September 18. This was the largest inflow recorded for equities since at least 2005.

Citing data from EPFR Global, Australia & New Zealand Banking Group Foreign Exchange Strategist Wei Liang Chang told Bloomberg that the funds raked in USD 25.9 billion in the said week. Chang said USD 24.3 billion came from developed markets while USD 1.6 billion came from emerging-nation funds.

The MSCI All-Country World Index registered more gains after Fed Chair Ben S. Bernanke announced it would postpone its widely anticipated reduction of its USD 85 billion monthly bond purchases. Barclays Investment Strategist Wellian Wiranto said there would be some breathing space for people at this point. "In the coming week, we see further inflows given appetite has stabilized quite significantly and tapering was postponed," he added

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