Key facts
- Global equity funds experienced outflows totaling $23.21 billion in the week ending September 16, the largest in nine months.
- US equity funds recorded net redemptions of $31.44 billion in the week ending September 18, marking the fourth consecutive week of outflows.
- Rising crude oil prices to four-month highs fueled inflation concerns and lifted Treasury yields.
- The Federal Reserve raised interest rates by 25 basis points and signaled further tightening may be needed.
- Money market funds saw outflows of $58.87 billion, the largest weekly withdrawal since July 15.
- Equity sector funds recorded inflows of $2.29 billion, led by financials, consumer discretionary, and technology.
Global equity funds saw their largest weekly outflow in nine months through September 16, with investors withdrawing a net $23.21 billion. This outflow was attributed to rising crude oil prices, which fueled inflation concerns, and expectations of further Federal Reserve interest rate hikes.
US equity funds recorded outflows for a fourth consecutive week in the week to September 18, with net redemptions totaling $31.44 billion. Crude oil prices reached four-month highs during the week, contributing to inflation worries and lifting Treasury yields, which in turn weighed on growth-oriented funds.
The Federal Reserve raised interest rates by 25 basis points on Wednesday and indicated that additional tightening might be necessary to combat inflation, partly driven by higher energy costs. Investors withdrew $28.71 billion from US large-cap funds, $1.73 billion from mid-cap funds, and $3.16 billion from multi-cap funds, while small-cap funds attracted $568 million.
Equity sector funds, however, saw inflows of $2.29 billion, led by financials, consumer discretionary, and technology. Bond funds experienced a decrease in net purchases, reaching a five-month low of $554 million, with short-to-intermediate government and Treasury funds attracting $3.49 billion. Municipal debt funds and short-to-intermediate investment-grade funds saw notable outflows.
Money market funds recorded outflows of $58.87 billion, the largest weekly withdrawal since July 15.