May 19, 2021

Sovereign funds pile into U.S. assets at fastest since at least 2005

Featuring Rachel Ziemba

Source: Reuters

Journalist Tom Arnold

Sovereign wealth funds stampeded into U.S. equities and fixed income in the first quarter, with inflows at the highest in at least 16 years, data from eVestment showed.

Net flows of $25.4 billion poured into all global equity and bond strategies run by third-party fund managers, the biggest calculated flow since at least 2005, according to the data.

Stocks climbed to record highs during the first quarter, and the year so far, as the economic recovery from the coronavirus gained traction, but there have also been pullbacks as government bond yields spiked on changing outlooks for economic growth and inflation after government stimulus and monetary easing.

Read the full story and more from Reuters.

Authors

  • Rachel Ziemba

    Adjunct Senior Fellow, Energy, Economics, & Security Program

    Rachel Ziemba is an Adjunct Senior Fellow at the Center for a New American Security (CNAS). Her research focuses on the interlinkages between economics, finance and security i...