In the week ending February 28, global equity funds experienced significant inflows, buoyed by a surge in stock market performance and heightened interest in tech stocks, especially following Nvidia’s optimistic revenue outlook and the increasing excitement around artificial intelligence. According to LSEG data, net purchases of global equity funds amounted to $6.98 billion during this period, marking a stark reversal from the $2.93 billion net outflows recorded the previous week.
The MSCI World Stock Index reached a new peak of 763.35 last week, catalyzed by Nvidia’s announcement of an expected substantial rise in its first-quarter revenue, momentarily boosting its market value to $2 trillion.
Region-wise, Asian funds led the charge with net inflows of $3.56 billion, the largest in four weeks. European and U.S. funds also saw inflows, totaling approximately $2.52 billion and $196 million, respectively.
The tech sector remained a primary focus for investors, who dedicated $1.35 billion to it for the seventh week in a row of net inflows. Other sectors, including industrials and metals and mining, also experienced inflows, with net additions of $245 million and $219 million, respectively.
On the fixed income front, global bond funds continued to draw interest for the 10th week straight, attracting $9.78 billion in inflows. Government bond funds enjoyed their fifth consecutive week of net inflows, totaling about $1.79 billion. Additionally, medium-term USD bond funds and high yield funds attracted considerable attention, with inflows of $2.45 billion and $709 million, respectively.
