Global equity funds see outflows for an eighth straight week
8:44 am Friday, December 30th, 2022
(Reuters) – Global equity funds posted net outflows for an eighth straight week in the seven days to Dec. 28 as a stronger than expected U.S. GDP reading raised worries that U.S. interest rates could stay higher for longer.
However, outflows were capped by a Commerce Department report that showed U.S. consumer spending barely rose in November, while inflation cooled further.
According to Refinitiv Lipper data, investors withdrew a net $529 million from global equity funds, although that was down from $39.1 billion the previous week.
Graphic: Fund flows: Global equities bonds and money market – https://fingfx.thomsonreuters.com/gfx/mkt/zjvqjjzawpx/Fund%20flows-%20Global%20equities%20bonds%20and%20money%20market.jpg
U.S. equity funds recorded a net $5.41 billion worth of outflows but Asian and European funds attracted a net $1.66 billion and $460 million respectively.
Among equity sector funds, tech, financials and industrials saw net selling of $835 million, $468 million and $192 million respectively.
Graphic: Fund flows: Global equity sector funds – https://fingfx.thomsonreuters.com/gfx/mkt/xmvjkkdjnpr/Fund%20flows-%20Global%20equity%20sector%20funds.jpg
Meanwhile, a net $3.35 billion was withdrawn from bond funds, markedly lower than the $15.06 billion of outflows in the previous week.
Short- and mid-term bond funds experienced their 19th straight week of outflows, at $1.59 billion, while high yield bond funds lost a net $179 million.
Graphic: Global bond fund flows in the week ended Dec. 28 – https://fingfx.thomsonreuters.com/gfx/mkt/gkvlwwyjjpb/Global%20bond%20fund%20flows%20in%20the%20week%20ended%20Dec%2028.jpg
Investors purchased lower risk money market funds worth a net $14.18 billion and parked $814 million in government bond funds in a eighth straight week of net buying.
Data for commodity funds showed precious metal funds attracting a second straight week of inflows at a net $330 million, while energy funds recorded a net outflow of $247 million as selling continued from the previous week.
According to data available for 24,668 emerging market (EM) funds, both equity and bond funds saw net weekly outflows, amounting $344 million and $97 million, respectively.
Graphic: Fund flows: EM equities and bonds – https://fingfx.thomsonreuters.com/gfx/mkt/myvmooljbvr/Fund%20flows-%20EM%20equities%20and%20bonds.jpg
(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Kirsten Donovan)
