Global Equity Funds See Largest Outflow in Three Months as Investors Flee to Bonds

Investors pulled $19.82 billion from global equity funds last week, marking the largest weekly outflow in three months. The retreat was led by US equity funds, which saw $18.43 billion in exits—the biggest single-week withdrawal since March. Asia followed with $2.86 billion in net outflows, while Europe defied the trend with a modest $640 million inflow.

Sectoral equity funds bucked the broader sell-off, attracting $573 million in net inflows for a fourth consecutive week. Technology and industrials led gains, drawing $1.5 billion and $752 million respectively. Financials suffered, losing nearly $1.5 billion.

Bond funds emerged as the clear winner, with global inflows hitting $13.13 billion—extending their streak to nine weeks. Euro-denominated bonds accounted for $3.07 billion, while short-term and high-yield instruments pulled in $2.93 billion and $1.94 billion respectively. Money market funds bled $2.7 billion, compounding the previous week's $4.1 billion outflow.