(Reuters) – Global equity funds experienced their first weekly outflow in four weeks in the week to September 4, as cautious investors pulled back on concerns about global economic growth and ahead of a data-heavy week culminating in the U.S. jobs report.
According to LSEG data, investors sold a net $4.93 billion worth of global equity funds during the week, marking their largest weekly net sales since June 12.
Investors were concerned about the U.S. economy after a report from the Institute for Supply Management (ISM) on Tuesday revealed that U.S. manufacturing had contracted for the fifth consecutive month in August. Additionally, anticipation was building for the non-farm payrolls report, where a weak outcome could heighten fears of a sharp economic downturn.
Investors offloaded a net $11.73 billion worth of U.S. equity funds, marking a fourth weekly outflow in five weeks. On the contrary, European and Asian equity funds still gained about $5.25 billion and $1.88 billion worth of inflows.
The technology sector witnessed a significant $995 million worth of outflow following three weekly inflows in a row. Investors also ditched real estate and consumer discretionary funds of $388 million and $304 million, respectively.
Global investors sought the safety of money market funds as they pumped in a massive $67.92 billion into these funds in a fifth successive week of net purchases.
Simultaneously, investors snapped up global bond funds of a net $10.85 billion, extending net purchases into the 37th consecutive week.
They racked up a robust $3.26 billion worth of corporate bond funds, logging the largest inflow since July 17. Dollar denominated medium-term bond funds and government bond funds also observed $2.8 billion and $1.46 billion worth of net investments.
Concurrently, gold and other precious metal funds garnered a net $792 million worth of inflows, staying popular for the fourth week in a row. Investors also scooped up a net $189 million worth of energy funds.
Data covering 29,588 emerging market funds showed equity funds witnessed a 13th weekly outflow that amounted to a net $419 million. Conversely, bond funds attracted $1.45 billion, the biggest weekly inflow since July 10.
(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by William Maclean)
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