Spurred on by the economic woes of European sovereign debt, EPFR global-tracked bond funds attracted $7.57 billion in the week to 14 March 2012, with high yield, emerging markets, municipal and mortgage-backed bond funds the most popular among investors.
The data revealed that mortgage-backed bond funds have taken in money every week for over a year, while high yield bond funds have almost reached $24 billion in inflows.
US bond funds focusing on municipal, mortgage-backed, corporate high yield and intermediate term debt accounted for 70 per cent of inflows for the week to 14 March 2012.
Despite the gain, investment in high yield has slowed since they peaked in early February 2012.
Turning to equity funds, inflows remained steady, with investors showing a strong preference for exchange-traded funds.
In particular, investors maintained their appetite for alternative and dividend equity funds, global sector funds and committed the most money to Japan equity funds.
In Europe, equity fund outflows continued to deepen across the United Kingdom, France, Switzerland and Germany.
It was the 12th straight week of inflows into emerging market equity funds that suggested the broad-based support among investors for emerging market equity remains intact, stated EPFR Global.
However, the announcement that China would be lowering its full year gross domestic product target saw the first back-to-back outflows for Asia ex-Japan equity funds year-to-date.
