US Equity Funds See Fourth Weekly Outflow of $31.4 Billion
Investors withdrew $31.44 billion from US equity funds last week. The exit marks a fourth consecutive period of net redemptions.
US equity funds recorded net redemptions of $31.44 billion in the week ending September 18. This figure largely matches the $32 billion withdrawn in the previous week. The data comes from LSEG Lipper.
Rising crude oil prices heightened inflation concerns. Investors also reacted to expectations of further Federal Reserve rate hikes. The Fed raised interest rates by 25 basis points on Wednesday. The central bank signaled that additional tightening may be required to curb inflation.
Capital shifts across market caps
Large-cap funds saw the largest withdrawal at $28.71 billion. Mid-cap funds lost $1.73 billion. Multi-cap funds recorded outflows of $3.16 billion. Small-cap funds were the exception, attracting $568 million in net inflows.
Sectoral flows favor financials
Equity sectoral funds attracted $2.29 billion in weekly inflows. This is the highest amount in seven weeks. Financials led the gains with $1.37 billion in net purchases. Consumer discretionary funds took in $795 million. Technology funds recorded $775 million in inflows.
Bond and money market movements
Global bond fund inflows eased to a five-month low of $554 million. Short-to-intermediate government and Treasury funds continued to gain. These funds attracted $3.49 billion for the 11th consecutive week. Municipal debt funds saw outflows of $1.81 billion. Short-to-intermediate investment-grade funds lost $817 million.
Money market funds recorded net weekly outflows of $58.87 billion. This is the largest weekly withdrawal since July 15. The GN markets/inflation report highlights these significant shifts in liquidity. Investors are moving funds away from cash equivalents and into specific equity sectors.
