# Global equity funds see biggest weekly outflow in five weeks
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-07-22
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Investors offload $13.79 billion from global equity funds
Meta Description: Investors caution ahead of central bank meetings leads to $13.79B net outflow in global equity funds. Central banks expected to raise rates.
URL: https://financedigest.com/global-equity-funds-see-biggest-weekly-outflow-in-five-weekshtml

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(Reuters) – Global equity funds recorded their biggest weekly outflow in five weeks in the week to July 20, on investor caution ahead of crucial central bank meetings in which rate hikes are expected to be announced.

According to Refinitiv Lipper, investors offloaded a net $13.79 billion worth of global equity funds, marking the biggest weekly outflow since June 15.

![Fund flows- Global equities bonds and money market](https://www.globalbankingandfinance.com/wp-content/uploads/2022/07/295.jpg)

(GRAPHIC: [Fund flows- Global equities bonds and money market](https://www.financedigest.com/explainer-why-european-money-market-funds-inflows-are-lagging-behind-the-u-s-torrent.html "Explainer-Why European money market funds inflows are lagging behind the U.S. torrent?") – https://fingfx.thomsonreuters.com/gfx/mkt/zgvomxlryvd/Fund%20flows-%20Global%20equities%20bonds%20and%20money%20market.jpg)

The European Central [Bank raised its benchmark deposit rate](https://www.financedigest.com/bank-of-england-raises-rates-to-3-5-says-inflation-has-peaked.html "Bank of England raises rates to 3.5%, says inflation has peaked") by 50 basis points, above its own guidance of a 25-basis-point hike, to rein in soaring inflation levels in the region.

The U.S. Federal Reserve is also expected to raise policy rates by another 75 basis points at its meeting [next week](https://www.financedigest.com/china-arrivals-in-uk-next-week-will-not-face-compulsory-covid-tests-independent.html "China arrivals in UK next week will not face compulsory COVID tests -Independent") as it seeks to balance the risks of a stubbornly high inflation and the likelihood of a recession.

U.S. and European [equities funds](https://www.financedigest.com/norway-wealth-fund-to-consider-investing-in-unlisted-equities.html "Norway wealth fund to consider investing in unlisted equities") booked withdrawals of $8.45 billion and $5.6 billion, respectively, although investors poured about $740 million in Asian equity funds.

Sectoral data showed financial, consumer discretionary and metals and mining [funds witnessed outflows of $995 million](https://www.financedigest.com/british-ev-startup-arrival-gets-300-million-funding-aims-to-slow-cash-burn.html "British EV startup Arrival gets 0 million funding, aims to slow cash-burn"), $445 million and $416 million, respectively, but healthcare gained $511 million in inflows.

![Fund flows: Global equity sectors](https://www.globalbankingandfinance.com/wp-content/uploads/2022/07/296.jpg)

(GRAPHIC: Fund flows: [Global equity](https://www.financedigest.com/global-equities-gain-as-rising-bond-yields-pressure-gold.html "Global equities gain, as rising bond yields pressure gold") sectors – https://fingfx.thomsonreuters.com/gfx/mkt/mypmnlyaovr/Fund%20flows-%20Global%20equity%20sectors.jpg)

[Selling continued for a second week](https://www.financedigest.com/this-is-the-best-week-for-cash-savvy-iphone-fans-to-sell-their-6s-models.html "This is the best week for cash-savvy iPhone fans to sell their 6s models") in global bonds funds as investors unwind $6.9 billion worth of holdings.

Government funds saw outflows of $2.49 billion after 15 weeks of inflows, while net [selling in short- and medium-term bond funds](https://www.financedigest.com/intercos-fund-shareholders-l-catterton-otpp-sell-6-stake-at-7-discount.html "Intercos fund shareholders L Catterton, OTPP sell 6% stake at 7% discount") eased to a 15-week low of $1.88 billion.

![Global bond fund flows in the week ended July 20](https://www.globalbankingandfinance.com/wp-content/uploads/2022/07/297.jpg)

(GRAPHIC: Global bond [fund flows in the week ended July](https://www.financedigest.com/in-renewed-push-spain-to-tender-eu-funds-for-evs-batteries-in-july.html "In renewed push, Spain to tender EU funds for EVs, batteries in July") 20 – https://fingfx.thomsonreuters.com/gfx/mkt/gkplgyklxvb/Global%20bond%20fund%20flows%20in%20the%20week%20ended%20July%2020.jpg)

Meanwhile, investors sold money [market funds worth $1.34 billion after two weeks](https://www.financedigest.com/uk-property-market-braced-for-influx-of-chinese-buyers-as-golden-week-approaches.html "UK property market braced for influx of Chinese buyers as Golden Week approaches") of purchases.

In the commodities space, net selling in gold and precious metal funds stood at $1.1 billion, a 63% bigger outflow than the previous week, while energy funds posted a [fourth weekly](https://www.financedigest.com/londons-ftse-100-edges-higher-set-for-fourth-weekly-gain.html "London’s FTSE 100 edges higher, set for fourth weekly gain") outflow, valued at $180 million.

An analysis of 24,388 emerging market funds showed [investors jettisoned equity fund worth 2.04 billion](https://www.financedigest.com/uk-investors-add-1-2-billion-to-equity-funds-in-march-calastone.html "UK investors add .2 billion to equity funds in March – Calastone"), the biggest outflow in 10 weeks, while bond funds suffered a sixth weekly outflow of $2.13 billion.

![Fund flows: EM equities and bonds](https://www.globalbankingandfinance.com/wp-content/uploads/2022/07/298.jpg)

(GRAPHIC: Fund flows: EM equities and bonds – https://fingfx.thomsonreuters.com/gfx/mkt/mopanaoqlva/Fund%20flows-%20EM%20equities%20and%20bonds.jpg)

(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Shounak Dasgupta)


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