# Global equity funds see large outflows on slowdown worries
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-08-26
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Global Equity Funds See Biggest Weekly Outflows in Five Weeks
Meta Description: Find out why investors are concerned about rate hikes and the potential impact on the equity market, as well as insights from the Federal Reserve's
URL: https://financedigest.com/global-equity-funds-see-large-outflows-on-slowdown-worrieshtml

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(Reuters) – Global equity funds witnessed their biggest weekly capital withdrawals in five weeks in the week to Aug. 24 on concerns that rate hikes would lead to a recession.

Investors were also wary ahead of the Federal Reserve’s annual Jackson Hole symposium, which could offer insights into the central bank’s future policy path.

According to Refinitiv Lipper, investors disposed of a net $10.48 billion worth of global [equity funds](https://www.financedigest.com/norway-wealth-fund-to-consider-investing-in-unlisted-equities.html "Norway wealth fund to consider investing in unlisted equities") in the week, which compares with just $3.15 billion worth of purchases in the previous week.

Fund flows: [Global equities bonds](https://www.financedigest.com/global-equities-gain-as-rising-bond-yields-pressure-gold.html "Global equities gain, as rising bond yields pressure gold") and money market https://fingfx.thomsonreuters.com/gfx/mkt/zjpqkbrkmpx/Fund%20flows-%20Global%20equities%20bonds%20and%20money%20market.jpg

![Fund flows: Global equities bonds and money market](https://www.globalbankingandfinance.com/wp-content/uploads/2022/08/038.jpg)

Fed Chair Jerome [Powell is due to deliver his keynote speech](https://www.financedigest.com/stocks-dollar-pause-ahead-of-powell-biden-speeches.html "Stocks, dollar pause ahead of Powell, Biden speeches") to the symposium on Friday, and investors are likely to scrutinize the comments for any indication on how steep future interest rate hikes would be.

All [major regions witnessed equity](https://www.financedigest.com/4-trends-that-will-have-a-major-impact-on-private-equity-in-2021.html "4 Trends that will have a major impact on private equity in 2021") fund outflows with investors exiting a net $5.17 billion, $2.19 billion and $2.11 billion from Europe, the United States and Asia, respectively.

Among sector funds, tech, industrials and consumer discretionary faced [outflows of $2.04 billion](https://www.financedigest.com/french-asset-manager-amundi-posts-q3-outflows-of-13-billion.html "French asset manager Amundi posts Q3 outflows of billion"), $735 million and $595 million, respectively. [Financials sector](https://www.financedigest.com/how-can-the-financial-sector-safely-use-the-iot.html "How can the financial sector safely use the IoT?") funds obtained $1.85 billion, while utilities received $588 million.

Fund flows: [Global equity sector funds](https://www.financedigest.com/rate-rise-fears-prompt-third-week-of-global-equity-funds-outflows.html "Rate rise fears prompt third week of global equity funds outflows") https://fingfx.thomsonreuters.com/gfx/mkt/xmpjomaoxvr/Fund%20flows-%20Global%20equity%20sector%20funds.jpg

![Fund flows: Global equity sector funds](https://www.globalbankingandfinance.com/wp-content/uploads/2022/08/039.jpg)

Bond funds also recorded withdrawals, amounting to $8.41 billion, the [biggest for a week](https://www.financedigest.com/global-equity-funds-see-biggest-weekly-outflow-in-five-weeks.html "Global equity funds see biggest weekly outflow in five weeks") since June 29.

Investors sold high yield [funds of $5.98 billion, marking their biggest weekly net selling since June 15, while government and short- & medium-term funds saw outflows of $894 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") and $153 million, respectively.

Global [bond fund flows in the week](https://www.financedigest.com/shares-and-bonds-nervy-as-rate-hike-week-looms.html "Shares and bonds nervy as rate-hike week looms") ended Aug 24 https://fingfx.thomsonreuters.com/gfx/mkt/zdpxozmomvx/Global%20bond%20fund%20flows%20in%20the%20week%20ended%20Aug%2024.jpg

![Global bond fund flows in the week ended Aug 24](https://www.globalbankingandfinance.com/wp-content/uploads/2022/08/040.jpg)

Meanwhile, weekly net selling in [money market funds](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?") eased to a three-week low of $375 million.

Commodities funds’ data showed precious metal funds suffered outflows of $354 million in a ninth straight [week of net selling](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"), while energy funds had a second weekly outgo, although a marginal $5 million.

An analysis of 24,457 emerging market funds showed [investors sold equity funds of $1.34 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"), posting the biggest outflow in five weeks, while also exiting bond funds to the tune of $1.05 billion, after three weeks of buying in a row.

Fund flows: EM equities and bonds https://fingfx.thomsonreuters.com/gfx/mkt/mopangengva/Fund%20flows-%20EM%20equities%20and%20bonds.jpg

![Fund flows: EM equities and bonds](https://www.globalbankingandfinance.com/wp-content/uploads/2022/08/041.jpg)

(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Kim Coghill)


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