According to EPFR Global’s weekly fund flows report, high yield, emerging markets, municipal and mortgage backed bond funds were the largest recipients of new money in the fixed income space.
Year-to-date high yield bond funds are "within striking distance of the $24bn mark", while emerging markets bond funds have posted two of their four-biggest weekly inflows since the beginning of February.
Equity funds also enjoyed "a solid week" EPFR Global said, although investors’ preference was for ETFs as they tried to gain cheap access to rising indices.
"ETFs certainly provide investors with the quickest way to tap into the latest bounce in global equity markets," said Cameron Brandt, research director at EPFR Global, "But given the timing, some of the money may be looking to benefit from the quarterly rebalancing of many funds at the end of this month."
Investors continued to show distrust of Europe equity funds and of those with significant exposure to China after the eastern giant’s recent announcement that it has lowered its full-year GDP target.
"Flows into diversified GEM equity funds during the week ending 14 March suggested that broad-based support among investors for emerging markets equity remains intact. Collectively all EPFR Global-tracked EM equity funds recorded inflows for the 12th straight week despite the biggest retail redemptions since the first week of January and remain on track for their best start to a year since 2006," Brandt said.
