Global Equity Fund Outflows Reach Nine-Month Peak Amid Inflation and Rate Hike Fears
Global equity funds face record outflows as oil prices rise and Fed rate hike expectations grow.
POLICY WIRE — New York, United States — Global equity funds saw their largest weekly outflow in nine months during the week ending September 16, driven by rising crude oil prices and concerns over inflation. Investors pulled a total of $23.21 billion from global equity funds, according to LSEG Lipper data.
U.S. equity funds also experienced significant redemptions, with net withdrawals reaching $31.44 billion for the week. This follows a similar outflow of $32 billion the previous week, signaling continued investor caution. Crude oil prices climbed to four-month highs, fueling inflation worries and pushing Treasury yields higher, which negatively impacted growth-focused investment vehicles.
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While large-cap, mid-cap, and multi-cap U.S. funds saw substantial outflows, small-cap funds attracted $568 million in inflows. Sectoral funds, particularly financials, consumer discretionary, and technology, recorded the biggest weekly inflows, with net purchases of $1.37 billion, $795 million, and $775 million respectively. Meanwhile, bond funds saw reduced inflows, and money market funds faced their largest weekly outflow since July 15.
Reporting by Policy-Wire (PW)





