Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Global equity funds see higher outflows on rate hike concerns -Lipper

EconomyOct 01, 2021 09:22AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. FILE PHOTO: Global indices are displayed on a screen on the trading floor at the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S., August 19, 2021. REUTERS/Andrew Kelly/File Photo

(Reuters) - Outflows from global equity funds ramped up in the week to Sept. 29 on expectations that major central banks would lift interest rates soon amid concerns that inflation could persist for longer.

According to data from Lipper, investors sold a net $1.21 billion in global equity funds in the week, compared with net selling of $174 million in the previous week.

Fund flows into global equities bonds and money markets:

U.S. Federal Reserve policymakers indicated last week that they are ready to raise rates in 2022 and that the bank is likely to begin reducing its monthly bond purchases as soon as next month. The central bank expected inflation at 4.2% this year, more than double its 2% target rate.

U.S. equity funds faced net selling of $6.24 billion, however Asian and European equities drew net purchases of $3.25 billion and $0.15 billion respectively.

Global fund flows into equity sectors:

Global bond funds saw net inflows for the 10th week in a row, although purchases fell 22% compared with the previous week.

Global short and medium term bond funds lured a net $2.64 billion, the biggest amount in four weeks, while inflation-protected funds attracted about $1 billion, a three-week high, though government bond funds faced small outflows of $26 million.

Global bond funds' flows in the week ended Sep 29:'%20flows%20in%20the%20week%20ended%20Sep%2029.jpg

Investors sold global money market funds to the tune of a net $22.1 billion, compared with $30.3 billion in net purchases in the previous week.

Among commodity funds, energy funds saw their first net inflow in seven weeks at $25 million, while precious metals funds faced outflows of a net $931 million.

An analysis of 23,682 emerging market funds showed investors sold a net $2.84 billion in bond funds and $2.46 billion in equity funds, the second week of net selling in each segment.

Fund flows into EM equities and bonds:

Global equity funds see higher outflows on rate hike concerns -Lipper

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.

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

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
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?
Replace the attached chart with a new chart ?
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'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
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email