Global equity and bond funds see big outflows

Global equity and bond funds saw significant withdrawals in the week ended August 23 amid worries that robust US economic data could keep interest rates elevated for a prolonged period, reports Reuters.
Investors also avoided putting money in riskier assets ahead of Fed Chair Jerome Powell's speech at a Jackson Hole conference where they expect more hints on the outlook for interest rates from policymakers.
According to Refinitiv Lipper data, investors sold a net $11.1 billion worth of global equity funds, the most in a week in over two months.
They also withdrew a net $3.1 billion from global bond funds, the biggest weekly net selling in about eight months.
US Treasury yields climbed to their highest in 16 years this week as the economic readings from the US, such as jobs and consumption, pointed to stronger growth, prompting investors to scale back expectations for policy easing next year.
The US and European equity funds booked outflows of about $11.07 billion and $1.52 billion, respectively, but Asian funds observed $1.14 billion worth of net purchases.
By sector, financials, tech, and consumer staple funds saw $734 million, $702 million, and $357 million in net sales.
Among bond funds, global high-yield funds had a fifth weekly outflow worth about $1.96 billion. Government and corporate bond funds, meanwhile, drew $2.03 billion and $209 million in inflows, respectively.
In commodities, investors trimmed positions in precious metal funds for a 13th successive week, with a net $675 million worth of selling. Energy funds also lost $164 million in outflows.
Data for 24,209 emerging market funds showed that equity funds faced $2.02 billion worth of net selling, the most in eleven weeks, while bond funds booked $658 million in net sales.