Global equity funds see outflows on worries over recession

The global equity funds saw outflows in the week ended November 23 because of worries over a recession due to higher interest rates and fresh lockdowns as COVID cases rise in China.

According to the data, investors withdrew $8.6 billion and $840 million from U.S. and European equity funds, but invested $470 million in Asian equity funds.

Financials, tech and real estate funds had outflows of $751 million, $429 million and $390 million, respectively, although consumer staples received $600 million inflows.

The bond funds posted outflows for a third week in a row, amounting to $2.52 billion.

Global short- and mid-term bond funds saw withdrawals of $4.84 billion, the biggest weekly outflow in five weeks, but high-yield bond funds lured inflows for a second consecutive week, to the value of $2.35 billion.

In the third week of net buying, the global government bond funds received inflows worth $809 million.

The money market funds saw a lot of inflows, with investors bracing for the release of the Federal Reserve's minutes.

The data showed investors accumulated global money market funds worth $26.4 billion, compared to an outflow of $9.4 billion in the previous week.

For the fifth consecutive week, energy funds received net investment of $149 million. After five weeks of net selling in a row, investors purchased about $18 million of precious metals.

According to the data available for 24,768 emerging market EM funds, EM equity funds received $1.11 billion, but EM bond funds had outflows of $201 million after $233 million worth of net purchases the previous week.