Investors added the most cash to global bond funds since May and withdrew from equity funds last week amid concern economic growth around the world is weakening.
The bond funds took in a net $3.83 billion in the week ended Sept. 1, according to research firm EPFR Global. Stock funds lost $6.87 billion, the most in 14 weeks. Those buying debt and equities in emerging markets extended their streak of inflows to 14 weeks.
“Emerging market equity funds fared better than their developed market counterparts, while bond funds fared best of all,” the firm wrote in a press release dated yesterday.
A Bank of America Merrill Lynch index of corporate bonds around the world has rallied 8.8 percent this year as reports from U.S. home prices to Japanese gross domestic product suggest the global economy is slowing. The MSCI World Index of shares in 24 developed nations is down 4.1 percent for 2010.
The equity index pared its year-to-date loss last week as American and Chinese manufacturing reports raised optimism that the economy will avoid a recession.
Investors also withdrew $4.1 billion from money-market facilities and took $1.1 billion from funds that buy both debt and equities, the Cambridge, Massachusetts-based company said. EPFR Global tracks funds with about $13 trillion in assets worldwide.
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