Global stock funds sold heavily in the week ending Aug. 31, owing to expectations that major central banks would continue to raise interest rates. Investors sold $21.41 billion in global stock funds in the week ending June 15, the most since June 15.
European and US equities funds lost $12.64 billion and $10.21 billion, respectively, although Asia acquired funds worth a net $1.51 billion. Bond funds also experienced $8.04 billion in net selling for the second week in a row. Outflows from high yield and short and medium-term bond funds totaled $5.44 billion and $2.46 billion, respectively.
However, government and inflation-linked funds got inflows of $1.3 billion and $162 million, respectively. According to an examination of 24,482 developing market funds, equities and bond outflows totaled $738 million and $933m last week.