(Reuters) – Global equity funds recorded enormous outflows in the week ended on Nov. 30 as investors booked profits – after a rally in the last month – amid concerns about global economic growth due to China’s strict zero-COVID curbs.
According to Refinitiv Lipper data, investors withdrew a net $5.44 billion out of global equity funds, the highest since the week ended Oct. 19. MSCI’s gauge of stocks across the globe gained about 6.8% in the last month.
Graphic: Fund flows: Global equities, bonds and money market https://fingfx.thomsonreuters.com/gfx/mkt/egpbykxnzvq/Fund%20flows-%20Global%20equities%20bonds%20and%20money%20market.jpg
The U.S. and Asian equity funds had outflows of $17.37 billion and about $170 million, respectively, although investors were net buyers in European funds with purchases worth $3.02 billion. Among equity sector funds, tech and financials booked outflows of $484 million and $308 million respectively. Still, healthcare funds remained in demand for a seventh week, obtaining a net of $823 million in inflows.
Graphic: Fund flows: Global equity sector funds https://fingfx.thomsonreuters.com/gfx/mkt/zjpqjkzkjvx/Fund%20flows-%20Global%20equity%20sector%20funds.jpg
Meanwhile, global bond funds also remained out of favour for a fourth consecutive week, recording outflows worth a net $14.14 billion. Global short- and mid-term bond funds lost $3.51 billion in a 15th straight week of outflow, while investors exited $1.09 billion worth of high-yield funds after two weeks in a row of purchases.
However, safer money market funds and government bond funds remained in demand, obtaining a net of $29.07 billion, the biggest in four weeks, and $1.86 billion respectively.
Graphic: Global bond fund flows in the week ended Nov 30 https://fingfx.thomsonreuters.com/gfx/mkt/gkplwgyglvb/Global%20bond%20fund%20flows%20in%20the%20week%20ended%20Nov%2030.jpg
Data for commodity funds showed energy funds received about $59 million, marking the sixth week of inflows, but precious metal funds had small outflows. According to data available for 24,756 emerging market (EM) funds, equity funds secured $656 million in a second straight week of inflows. Bond funds obtained $105 million after witnessing outflows in the previous week.
Graphic: Fund flows: EM equities and bonds https://fingfx.thomsonreuters.com/gfx/mkt/mypmonlnkpr/Fund%20flows-%20EM%20equities%20and%20bonds.jpg
(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; editing by Mark Heinrich)