Jan 6 (Reuters) – Global equity funds experienced a ninth straight week of net outflows in the seven days to Jan 4 as investors were cautious ahead of the release of the minutes of the latest Federal Reserve meeting.
Global Equity Funds recorded a net outflow of $15.42 billion, compared with a $791 million outflow the previous week, according to Refinitiv Lipper.
Last year, investors withdrew $172 billion and $354 billion, respectively, from global equity and bond funds, in response to a series of interest rate hikes by the US Federal Reserve.
Even though Fed minutes released this week showed officials favoring a slower pace of rate hikes, inflation concerns still linger as the US labor market remains tight.
US equity funds lost $20.72 billion in net sales value, but investors invested $3.16 billion and $1.06 billion in European and Asian funds, respectively.
Among sector funds, net sales in the technology, financial and medical sectors were $710 million, $503 million and $415 million, respectively.
Meanwhile, investors’ net investment in bond funds for the reporting period was $5.28 billion, the first weekly inflow since mid-August.
Bond funds raised a net $6.02 billion, the first weekly inflow in 20 weeks. Government bond funds also raised $4.37 billion, but inflation-protected funds recorded an outflow of $108 million.
In addition, safer money market funds received about $113.37 billion, recording the second consecutive week of inflows.
Commodities data showed that precious metals and energy funds received marginal inflows of $54 million and $4 million, respectively, after outflowing the previous week.
According to data from 24,528 emerging market (EM) funds, investors pulled $901 million out of equity funds, the second consecutive week of outflows. At the same time, bond funds raised $954.
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(Gaurav Dogra and Patturaja Murugabupati in Bangalore)