Global equity funds face largest outflow since August, Asian markets resist trend

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Global investors withdrew a net total of $4.52 billion from equity funds last week, marking the largest outflow since August 23, according to data from the London Stock Exchange Group (LON:LSEG). These outflows were particularly pronounced in the U.S. and Europe, with reductions of $6.64 billion and $130 million, respectively. However, Asian funds defied this trend, attracting $1.93 billion and recording inflows for the 16th consecutive week.

In sectoral shifts, financials and healthcare experienced significant outflows of $1.7 billion and $395 million respectively, while the energy sector welcomed $334 million in new investments, marking its largest weekly inflow since September 2022.

On the bond market front, global funds witnessed purchases totaling $1.95 billion last week, reversing the previous week's outflow of approximately $330 million. Corporate bond funds saw net purchases reaching their highest level since July 26 at $1.46 billion. Additionally, government and loan participation funds experienced inflows valued at $652 million and $426 million respectively.

However, not all sectors enjoyed inflows. High yield funds saw investors offloading $915 million worth of assets in the second consecutive week of outflows. Global money market funds also saw a decrease in demand, attracting just $598 million compared to the previous week's hefty sum of $14.2 billion.

In the commodities sector, precious metal funds continued their 17-week outflow streak by shedding an additional $325 million. Energy funds also faced withdrawals totaling $87 million.

Emerging market data covering 28,228 funds revealed that bond funds faced substantial outflows of $1.11 billion - their largest in a month. Equity funds in these markets also struggled with their sixth consecutive week of net sales, which totaled $968 million.

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