Global equity funds see massive outflows on slowdown fears

div classBodysc17zpet90 cdBBJodivpReuters – Global equity funds witnessed a surge in outflows in the week ended May 11, as fears of an economic slowdown and further tightening by major central banks to tame stubborn inflation spooked investors. p

In a fifth straight week of net selling, investors liquidated global equity funds worth 10.53 billion, compared with just 1.65 billion worth of net selling in the previous week, according to Refinitiv Lipper.pdivdivdiv classBodysc17zpet90 cdBBJodiv

GRAPHIC: Fund flows: Global equities, bonds and money market https:fingfx.thomsonreuters.comgfxmktxmvjoyzrbprFund20flows20Global20equities20bonds20and20money20market.jpgp

MSCIs index of world shares plunged to a 112year low of 607.4 this week as inflationary pressures raised fears of an economic hard landing. p

U.S. equity funds witnessed net selling worth 8.46 billion, European funds saw disposal of 4.33 billion, but investors were net buyers in Asian funds worth 2.23 billion. p

Among sector funds, financials record a sixth subsequent week of outflows, amounting 1.71 billion. Investors also drew about 0.7 billion each out of mining and industrials.p

ppGRAPHIC: Fund flows: Global equity sector funds https:fingfx.thomsonreuters.comgfxmktmyvmnydkjprFund20flows20Global20equity20sector20funds.jpgp

Meanwhile, global bond funds posted outflows of 13.23 billion in a sixth straight week of net selling. p

Global short and mediumterm bond funds saw outflows of 8.14 billion in the biggest weekly outflow since at least June 2020, but government bond funds lured a third weekly inflow, worth a net 3.38 billion.p

GRAPHIC: Global bond fund flows in the week ended May 11 https:fingfx.thomsonreuters.comgfxmktmovanoxlbpaGlobal20bond20fund20flows20in20the20week20ended20May2011.jpgp

Investors also withdrew 1.73 billion out of money market funds in their second weekly net selling in a row. p

Data for commodities funds showed that weekly net selling in gold and precious metal funds jumped to a twomonths peak of 1.54 billion, as gold prices broke below their 200day moving averages.

An analysis of 24,155 emerging market funds showed that investors sold equity funds of 2.49 billion and bond funds of 2.65 billion, marking a fifth consecutive week of outflow in both segments.

GRAPHIC: Fund flows EM equities and bonds https:fingfx.thomsonreuters.comgfxmktgkvlgkrdapbFund20flows20EM20equities20and20bonds.jpgp

Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru Editing by Sherry JacobPhillipsp

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