NEW YORK, Oct 28 (Reuters) - High-yield bond funds received record inflows in the week ending Oct. 26 as hopes of an agreement to curb the euro-zone crisis and positive U.S. economic data encouraged risk taking, EPFR Global said on Friday.
Other high-yielding asset classes also benefited from the recovery in risk appetite — emerging-market equity funds recorded their biggest weekly inflows since early April and frontier equity funds snapped an 11-week outflow streak.
Inflows into high-yield bond funds reached record levels for the second consecutive week — $4.7 billion poured into the asset class last week, following inflows of around $3 billion in the previous period, the fund tracker said.
“Better-than-expected U.S. growth during the third quarter, an encouraging start to the third-quarter corporate earnings season and Europe’s bumpy progress towards another agreement for containing the euro-zone debt crisis encouraged investors to put more emphasis on returns,” EPFR said in a statement.
Global equity funds attracted $2.8 billion in cash after four weeks of redemptions as solid inflows into exchange-traded funds more than offset a 16th consecutive week of redemptions from actively managed funds.
Inflows into global-tracked emerging-market equity funds hit levels last seen in the first week of July, although redemptions were still seen in funds focused on specific regions such as emerging Asia or Latin America.