Investors sold off a net $7.82 billion worth of global equity funds during the week, adding to $29.95 billion worth of net divestments the week before, LSEG Lipper data showed.
They snapped up money market funds to the tune of $135.37 billion, in their most robust weekly net purchase since January 8.
Fund investors rushed to lock in profits from a recent rally after U.S. President Donald Trump announced steep tariffs on exports from dozens of trading partners, including Canada, Brazil, India and Taiwan. A disappointing U.S. jobs report for July added to investor caution.
A total of $13.7 billion of weekly net sales for U.S. equity funds outweighed inflows in European and Asian equity funds totalling $3.45 billion and $1.85 billion respectively.
Sectoral funds also bucked the trend, with communication services, industrial and tech sector funds luring in a significant $1.18 billion, $822 million and $541 million, respectively.
Global bond funds attracted $20.98 billion worth of net investments, the largest weekly inflow since May 21.
A third of these purchases were in short-term bond funds, which drew $7.29 billion, the largest weekly net investment since April 9. Euro-denominated bond funds and high yield bond funds also saw a hefty $3.5 billion and $2.48 billion worth of net buying. Demand for gold and precious metals commodity funds eased to an 11-week low, as these funds saw just a $2.79 billion weekly net inflow.
Emerging markets had a mixed week, as investors added bond funds for a third successive week to the tune of $2.24 billion, but ditched a net $2.76 billion worth of equity funds.
Global equity funds see outflows for 2nd week on tariff, economic concerns
FE Team | Published: August 08, 2025 23:35:59
Global equity funds see outflows for 2nd week on tariff, economic concerns
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