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Global equity funds post biggest weekly outflow in six weeks

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Friday, December 2nd, 2022
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Reuters

Global equity funds recorded enormous outflows in the week ended on Nov. 30 as investors booked profits – after a rally in the last month – amid concerns about global economic growth due to China’s strict zero-COVID curbs.

According to Refinitiv Lipper data, investors withdrew a net $5.44 billion out of global equity funds, the highest since the week ended Oct. 19. MSCI’s gauge of stocks across the globe (.MIWD00000PUS) gained about 6.8% in the last month.

Fund flows: Global equities, bonds and money market
Fund flows: Global equities, bonds and money market

The U.S. and Asian equity funds had outflows of $17.37 billion and about $170 million, respectively, although investors were net buyers in European funds with purchases worth $3.02 billion.

Among equity sector funds, tech and financials booked outflows of $484 million and $308 million respectively. Still, healthcare funds remained in demand for a seventh week, obtaining a net of $823 million in inflows.

Fund flows: Global equity sector funds
Fund flows: Global equity sector funds

Meanwhile, global bond funds also remained out of favour for a fourth consecutive week, recording outflows worth a net $14.14 billion.

Global short- and mid-term bond funds lost $3.51 billion in a 15th straight week of outflow, while investors exited $1.09 billion worth of high-yield funds after two weeks in a row of purchases.

However, safer money market funds and government bond funds remained in demand, obtaining a net of $29.07 billion, the biggest in four weeks, and $1.86 billion respectively.

Global bond fund flows in the week ended Nov 30
Global bond fund flows in the week ended Nov 30

Data for commodity funds showed energy funds received about $59 million, marking the sixth week of inflows, but precious metal funds had small outflows.

According to data available for 24,756 emerging market (EM) funds, equity funds secured $656 million in a second straight week of inflows. Bond funds obtained $105 million after witnessing outflows in the previous week.

Fund flows: EM equities and bonds
Fund flows: EM equities and bonds

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