Global equity funds recorded their largest weekly outflow in nine months during the week ending September 16, as a surge in oil prices heightened inflation concerns.
Furthermore, a series of interest rate hikes from central banks worldwide did little to calm down investor caution.
As per the LSEG Lipper data, investors withdrew a net USD 23.21 billion from global equity funds, the biggest weekly outflow since December 17, 2025.
Crude oil prices climbed to four-month highs during the week, stoking inflation worries and pushing Treasury yields higher, weighing on growth-oriented funds.
The Fed, reacting to the situation, raised interest rates by 25 basis points on September 16 and indicated that further increases may be needed to curb inflation fueled by higher energy costs linked to the Iran war.
The Bank of Japan, known for practicing ultra-low interest rate regimes in the last few years, has shunned the practice altogether, with yen facing extreme volatility.
Investors withdrew a net USD 31.44 billion from US equity funds, a fourth consecutive week of outflows.
European equity funds, during the same period, recorded net outflows of USD 295 million. Asian funds, however, defied the trend by attracting net inflows of USD 6.26 billion.
Weekly inflows into equity sector funds climbed to a six-week high of USD 4.49 billion, led by technology, financials, and consumer discretionary funds, which attracted USD 1.94 billion, USD 1.31 billion, and USD 621 million, respectively.
Global bond funds in total attracted USD 855 million in inflows, the smallest weekly amount since April 1.
As per the LSEG Lipper, investors have so far withdrawn USD 3.85 billion from high-yield bond funds and USD 1.1 billion from euro-denominated bond funds, while adding USD 2.96 billion to government bond funds and USD 1.96 billion to short-term bond funds.
“Money market funds recorded outflows of USD 77.42 billion, ending a two-week streak of net purchases,” LSEG Lipper stated further.
Among commodity funds, gold and other precious metals funds attracted USD 1.17 billion, marking their ninth weekly inflow in the past 10 weeks.
Energy funds posted weekly outflows of USD 148 million, compared with an inflow of USD 211 million in the first week of September.
In emerging markets, equity funds recorded a second consecutive week of outflows, totalling USD 1.61 billion.
“Investors also withdrew USD 167 million from bond funds following six consecutive weeks of inflows,” stated the LSEG Lipper, whose data covered the details from some 29,002 funds.