Global equity funds see biggest weekly outflow since mid-Dec

(Reuters) – Global equity funds saw massive outflows in the week to March 2 as investors sought safer havens for their assets amid Russia’s invasion of Ukraine.

Investors offloaded global equity funds worth a net $13.09 billion, in their largest weekly net selling since Dec. 15, Refinitiv Lipper data showed.

Meanwhile, the rush for safety led inflows of $15.9 billion into money market funds, their biggest net purchases in eight weeks.

Graphic: Fund flows: Global equities bonds and money market: https://fingfx.thomsonreuters.com/gfx/mkt/dwvkrljewpm/Fund%20flows-%20Global%20equities%20bonds%20and%20money%20market.jpg

European equity funds were under intense selling pressure, facing outflows of $15.06 billion. Investors also sold $1.7 billion worth of U.S. equity funds, but purchased Asian funds worth $2.78 billion.

Financials lost $3.76 billion in net selling, the biggest weekly outflows since at least April 2020. Investors also sold $623 million and $543 million of consumer discretionary and tech funds respectively, but purchased energy sector funds of $867 million.

Graphic: Fund flows: Global equity sector funds: https://fingfx.thomsonreuters.com/gfx/mkt/zjpqkoawrpx/Fund%20flows-%20Global%20equity%20sector%20funds.jpg

Investors jettisoned global bond funds of $11.66 billion in a eighth straight week of net selling.

Short- and medium-term global bond funds witnessed net selling worth $5.8 billion, a 88% higher outflow compared with previous week, while high-yield bond funds accounted a $2.31 billion worth of outflow, in a eighth consecutive week of net selling.

Meanwhile, government bond funds lured purchases of $4.23 billion, marking the biggest weekly inflow since Dec. 8, while inflation-protected funds attracted $610 million.

Graphic: Global bond fund flows in the week ended March 2: https://fingfx.thomsonreuters.com/gfx/mkt/mypmnxjamvr/Global%20bond%20fund%20flows%20in%20the%20week%20ended%20March%202.jpg

Among commodity funds, demand for precious metal funds surged to a five-week high as they obtained inflows of $1.46 billion, however, energy funds booked marginal outflows worth $25 million after a third week of purchases.

An analysis of 24,438 emerging market funds showed investors sold bond funds of $3.98 billion, their biggest outflow since at least April 2020, while equity funds saw net selling of $731 million.

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

(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Andrew Heavens)

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