Breaking News
Get 40% Off 0
🔎 See NVDA's full ProTips for an instant risks or rewards Claim 40% OFF

Global equity funds see biggest weekly outflow in five weeks

Published May 05, 2023 07:29AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., May 3, 2023. REUTERS/Brendan McDermid

(Reuters) - Global equity funds suffered massive outflows in the week to May 3, hit by weak economic data and worries over a recession as investors were fretted about the likelihood of interest rates staying higher for an extended period.

According to Refinitiv Lipper data, global equity funds recorded a net $16.9 billion worth of outflows in the week to May 3, marking the biggest weekly outflow since March. 29.

The first quarter economic data painted a bleak outlook for the year, as U.S. economic growth slowed more than expected. At the same time, the German economy also stagnated due to declining consumption.

(GRAPHIC: Fund flows: Global equities, bonds and money markets - https://www.reuters.com/graphics/GLOBAL-FLOWS/GLOBAL-FLOWS/gdpzqmloqvw/chart.png)

In Asia, China's factory activity dipped in April, suggesting the manufacturing sector is losing momentum amid a bumpy post-COVID economic recovery.

This week, the Fed raised interest rates by a quarter of a percentage point again, increasing consumer and company borrowing costs.

The U.S. and European equity funds booked $15.6 billion and $600 million worth of outflows during the week, while Asian funds drew a small inflow of $160 million.

Among sectors, investors pulled out money worth $563 million and $358 million from tech and financial sector funds, while they poured a net $463 million into consumer staples.

(GRAPHIC: Fund flows: Global equity sectors - https://www.reuters.com/graphics/GLOBAL-FLOWS/GLOBAL-FLOWS/lbpggleawpq/chart.png)

Meanwhile, investors continued to favour money market funds, which lured inflows worth $44.3 billion, higher than $41.7 billion in the previous week.

Global bond funds also secured $3.95 billion of inflows in a second week of net buying.

Investors purchased government and short- and medium-term bond funds of about $2 billion each but drew $910 million out of high-yield funds.

(GRAPHIC: Global bond fund flows in the week ended May 3 - https://www.reuters.com/graphics/GLOBAL-FUNDS/GLOBAL-FUNDS/akveqelmqvr/chart.png)

Among commodities, energy funds received $169 million in a second straight week of net buying, while precious metal funds drew a net $87 million worth of inflows.

Data for 23,973 emerging market funds showed investors received a net $1.35 billion worth of equity funds in their biggest weekly net buying since March 1 but exited a net $183 million worth of bond funds.

(GRAPHIC - Fund flows: EM equities and bonds - https://www.reuters.com/graphics/GLOBAL-FLOWS/GLOBAL-FLOWS/klvygnywlvg/chart.png)

Global equity funds see biggest weekly outflow in five weeks
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email