Global equity funds see massive outflows

Investors withdrew a large amount of money out of global equity funds in the seven days ended February 22, spooked by prospects of a longer-than-anticipated tighter monetary policy from the Federal Reserve following stronger economic data coming out of the US, reports Reuters.

Data released during the period showed upbeat US business activity in February and a drop in weekly jobless claims, cementing views that the Fed would keep raising interest rates for longer.

Investors offloaded a net $6.43 billion worth of global equity funds during Feb. 16-22 after $1.47 billion worth of net selling during Feb. 9-15, Refinitiv Lipper data showed.

Investors exited US, European and Asian equity funds worth $6.73 billion, $750 million and $540 million, respectively, during the seven days ended Feb. 22.

Healthcare and technology sectors saw $737 million and $655 million worth of outflows, while investors put in about $312 million into consumer staples.