Global equity funds recorded significant outflows during the week ending September 9, marking the largest weekly decline since March 18. According to LSEG Lipper data tracking approximately 29,000 funds, equity funds saw net outflows of $15.52 billion, with U.S. equity funds accounting for net sales of $32.27 billion. In contrast, European and Asian equity funds attracted positive flows of $11.16 billion and $3.03 billion, respectively.
The outflow activity coincided with a sharp rise in crude oil prices amid geopolitical developments. Brent crude reached a four-month high of $109.97 per barrel on Friday after crossing the $100 threshold earlier in the week. Market participants cited concerns that elevated oil prices would sustain inflationary pressures and potentially prompt major central banks to increase interest rates. A producer price report released Thursday reinforced these concerns by showing inflation remained firm in August.
Within equity markets, sector-specific funds demonstrated divergent patterns. Technology and financial sector funds led inflows among sectoral funds with net purchases of $1.89 billion and $1.25 billion, respectively, generating total sectoral inflows of $2.92 billion.
Fixed income investments attracted increased attention from investors seeking stability. Global bond funds received $8.95 billion in net inflows, the smallest weekly amount since July 29. Short-term bond funds recorded their second-largest weekly inflow in three months with $6.65 billion. Investors also allocated $1.01 billion to loan participation funds and $743 million to government bond funds, while reducing corporate bond fund positions by $2.37 billion. Money market funds extended their inflow streak with $10.72 billion in new purchases.
Commodity fund activity showed mixed results. Gold and precious metals funds experienced net sales of $537 million, ending an eight-week streak of consecutive inflows. Energy-related commodity funds attracted $211 million. In emerging markets, investors ended an eight-week period of net purchases, recording net sales of $1.56 billion, though emerging market bond funds continued their positive streak with their sixth consecutive weekly inflow of $537 million.
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