The current success of bond funds

  •   19/06/2020 - 14h49
  •   HARMANT Adeline

While my financial markets are still creating fears and uncertainties for investors, bond funds seem to be doing well and are taking advantage of this to attract more and more individuals. We suggest you learn a little more about this situation through this detailed article.

The current success of bond funds

The success of bond funds and why:

At present, bond funds are therefore the asset class that seems to be the most advantageous for investors. In fact, during the last week, this asset class recorded an all-time record of nearly $32.5 billion in net inflows. The best result was recorded between June 5 and June 11 with $24.6 billion. At least that's what the weekly BofA Global Research's collection flow report, Flow Show, reports.

The main bond segments also saw a strong increase in inflows, with investment bond funds in particular recording inflows of USD 18.6 billion, the second largest amount. High-yield bond funds, on the other hand, recorded an inflow of $6.5 billion, the fifth largest inflow. Finally, emerging bond funds raised $2.2 billion.

It is also worth noting that American municipal bond funds had an equally historic week with a $2.4 billion fundraising. It is also worth noting that sovereign bond funds, for their part, raised nearly $4.8 billion.

 

Risk predominates in the investor's portfolio in other markets:

As regards other investment markets, we also note a return of risk in investors' portfolios, particularly in equity funds. The latter thus recorded $13.8 billion in inflows and doubled their results compared to last week with only $6.2 billion.

Once again, US equity funds are the most attractive asset class with more than $11.5 billion raised. On the other hand, there was a net decline in tech and health funds, which dominated the market during the previous weeks with +0.2 and -0.4 billion in inflows.

As far as the European market is concerned, this time we can see that European funds have also performed well with 2.4 billion dollars of inflows over the week. As for emerging funds, they lost even more ground with an outflow of 4.8 billion dollars.

Finally, and in terms of liquidity, money market funds returned $6.9 billion to their investors. The gold funds, for their part, experienced a second outflow over the quarter with -0.1 billion dollars over the past week.