Investors sell tech, move into inflation protection – BofA

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LONDON (Reuters) – Investors have taken money out of tech equity funds and loaded up on inflation protection amid fears the Federal Reserve might alter its ultra accommodative monetary policy as inflation picks up, BofA’s weekly fund flow statistics showed on Friday.

The week to May 12 saw the largest flows towards Treasury Inflation-Protected Securities funds in 23 weeks with an inflow of $1.9 billion, BofA said, citing EPFR data.

At the same time, tech equity funds saw their first outflow in five weeks.

Typically, the premium investors are willing to pay for so-called growth stocks, such as in the tech sector, shrinks during a economic rebound when inflation and interest rates rise.

All in all, equity funds saw $25.7 billion in inflows, while $13.6 billion went into cash and $6.9 billion went into bonds, BofA said.

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