Global equity funds see biggest outflow in over seven months – Lipper

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FILE PHOTO: A man wearing a protective mask, amid the COVID-19 outbreak, is reflected on an electronic board displaying stock prices outside a brokerage in Tokyo

– Global equity funds faced massive outflows in the week ended Dec. 1 on worries about the economic impact from the spread of the Omicron coronavirus variant, while the U.S. Federal Reserve’s hawkish tilt on unwinding its stimulus support also added to investor concerns.

Investors sold global equity funds worth a net $15.56 billion, that marked the biggest outflow since the week ended April 28, Refinitiv Lipper data showed.

Fund flows into global equities bonds and money markets: https://fingfx.thomsonreuters.com/gfx/mkt/jnpweayrapw/Fund%20flows%20into%20global%20equities%20bonds%20and%20money%20markets.jpg

European equity funds faced outflows of $27.12 billion, although investors purchased U.S. and Asian funds worth $7.59 billion and $3.26 billion respectively.

Among equity sector funds, technology funds secured inflows of $3.17 billion, their biggest weekly inflow in over nine months, meanwhile, financials and energy funds saw net selling of $1.74 billion and $0.45 billion respectively.

Global fund flows into equity sectors: https://fingfx.thomsonreuters.com/gfx/mkt/zgvomnblavd/Global%20fund%20flows%20into%20equity%20sectors.jpg

Global bond funds witnessed their first weekly outflow in seven weeks, worth a net $1.89 billion.

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A rush for safety led inflows of $3.69 billion in global government bond funds, the largest since July 21, meanwhile, inflation protected funds pulled in $872 million, although, high yield funds posted net selling for a second straight week, worth $2.76 billion.

Global bond funds’ flows in the week ended Dec 1: https://fingfx.thomsonreuters.com/gfx/mkt/byprjqlnepe/Global%20bond%20funds’%20flows%20in%20the%20week%20ended%20Dec%201.jpg

Global money market funds drew net purchases of $16.31 billion, a 45% surge over the previous week.

Within commodity funds, precious metal funds attracted $120 million in net purchases, marking a second straight week of inflow, while energy funds lured a net $101 million.

An analysis of 24,052 emerging market funds showed investors sold bond funds for a third straight week worth $1.75 billion, while equity funds saw $384 million worth of outflow after four straight weeks of inflow.

Fund flows into EM equities and bonds: https://fingfx.thomsonreuters.com/gfx/mkt/akpezoqynvr/Fund%20flows%20into%20EM%20equities%20and%20bonds.jpg

(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Shailesh Kuber)


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