US equity funds see biggest weekly outflow in two months

US investors cut their equity fund holdings and boosted safer positions in the seven days to August 14 amid persistent concerns over an economic slowdown and recent market volatility, reports Reuters.

Investors withdrew a net $8.92 billion from US equity funds in the largest weekly selloff since June 12, while channeling $16.1 billion and $3.35 billion into money market and government bond funds, respectively, according to LSEG data.

Fund investors remained risk-averse amid recent turbulence in risk assets, though benign US inflation data and strong July retail sales have buoyed stocks this week.

In the week to August 14, US large-cap equity funds experienced a net outflow of $6.08 billion, the most in nine weeks, with small-cap, mid-cap, and multi-cap funds also recording outflows of $1.41 billion, $404 million and $72 million, respectively.

Sectoral funds registered their first weekly net inflow in four weeks, gaining $380 million, buoyed by significant inflows of $802 million in utilities and $541 million in financials.

US bond funds attracted $3.55 billion in net purchases, marking their 11th consecutive weekly inflow.