GRAPHIC-Global equity funds see biggest weekly outflow in two months

Kitco Media
By Reuters
Published:
Updated:
Reuters
March 3 (Reuters) - Global equity funds suffered their biggest weekly net selling in two months in the seven days to March 1 as global stocks fell after strong U.S. economic data stoked fears about further rises in interest rates. The MSCI's All-World index of global shares dipped 2.64% last week to record its worst week since Sept. 23 on worries about Federal Reserve rate hikes as data showed robust U.S. personal consumption and spending in January. Global equities, however, recovered some lost ground on Friday after Atlanta Federal Reserve President Raphael Bostic said he favoured "slow and steady" quarter-point U.S. rate increases to limit risk to the economy. Data from Refinitiv Lipper showed global equity funds saw a net $13 billion worth of outflows in the week to March 1, the biggest amount since Jan. 4.


The U.S. and European equity funds witnessed $12.9 billion and $660 million worth of net disposals; however, Asian funds drew a net $1.35 billion worth of inflows. The healthcare, tech and utilities sector funds booked $1.1 billion, $538 million and $450 million worth of outflows, respectively. Still, industrials drew $560 million in inflows. At the same time, low-risk money market funds obtained $51.36 billion in net purchases, the most since Jan. 4. Meanwhile, global bond funds accumulated $6.83 billion worth of inflows, compared with just $1.46 billion worth of net purchase in the previous week. Government bond funds attracted $4.38 billion and corporate bond funds secured $3.56 billion with outflows from high-yield funds easing to a three-week low of $1.74 billion. Data showed commodity funds lost $1.3 billion in outflows in their first weekly net selling in six weeks, with precious metal funds and energy funds recording $527 million and $281 million worth of outgo, respectively. Data for 23,732 emerging market funds showed equity funds drew an eighth weekly inflow, worth $1.56 billion, but bond funds remained out of favour for the third week with $924 million in outflows.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Fund flows: Global equities, bonds and money market Fund flows: Global equity sector funds Global bond fund flows in the week ended March 1 Fund flows: EM equities and bonds ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Christina Fincher)

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