Global equity funds see outflows on worries over recession

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.