Global equity funds attract inflows for third week in a row

Global equity funds had ‌a ​third straight week of ‌inflows in the week to January 28 on ​upbeat earnings expectations, while safe-haven assets like gold and bond funds ‍also saw solid demand amid ​uncertainty over potential U.S. tariff moves under President Donald ​Trump.

Global ⁠equity funds attracted $33.39 billion worth of inflows in the week, compared with about $9.5 billion worth of inflows in the previous week, LSEG Lipper data showed.

By region, European equity funds led with $11.03 billion worth ‌of inflows, the largest amount in three weeks. Investors also ​added $10.73 ‌billion and $6.95 billion to ‍U.S. ⁠and Asian funds respectively.

Among sectoral funds, industrial, tech, and metals and mining funds were the top gainers with weekly inflows of $3.04 billion, $2.7 billion and $2.24 billion, respectively.

Global bond funds had roughly $18.02 billion worth of net investments as investors extended their recent run of net purchases into a ​fourth successive week.

Short-term bond funds were popular, securing approximately $3.8 billion, the largest amount in three weeks. Investors also added corporate bond funds of a significant $3.45 billion.

Money market funds witnessed $10.31 billion in net inflows, with investors turning net buyers after two successive weeks of net sales.

The gold and precious metals commodity funds attracted a net $2.25 billion weekly net investment, the largest amount for a week since December 24.

Emerging market (EM) ​equity funds attracted $12.63 billion in net inflows last week, the largest since at least 2022, lifted by their cheaper valuations and growth prospects. EM bond funds also had ​a net $3.51 billion worth of weekly inflows.

Investment manager ‌Franklin ​Resources, better known ‌as Franklin Templeton, reported a jump ​in first-quarter profit on Friday as rallying equities ‍markets boosted investment management ​fees.

The company’s shares rose 1.8% in ​premarket ⁠trading.

Markets have notched a series of record highs as artificial intelligence-fueled optimism and falling interest rates outweighed geopolitical and macroeconomic concerns.

Investment managers like Franklin ‌Templeton benefit from higher market levels as ​their fees ‌are tied to ‍the ⁠value of assets under management.

Earlier this week, peer Invesco also reported higher quarterly profit as investment management fees jumped.

Franklin Templeton ended the quarter with $1.68 trillion in assets under management, up 7% from ​a year ago.

The company’s total investment management fees, which is the largest contributor to its total operating revenue, rose 3% to $1.85 billion in the quarter.

Franklin’s quarterly profit was $255.5 million, or 46 cents per share, for the three months ended December 31, up from $163.6 million, or 29 cents per ​share, a year earlier.

The company saw total net inflows of $26.8 billion in the quarter, compared with outflows of $50 billion a year ​ago.