Global equity fund outflows hit nine-month high on inflation fears

Sept 18 (Reuters) - Global equity ‌funds recorded their ​largest ​weekly outflow in nine months in the week through September 16, as a surge in oil prices heightened inflation concerns and ‌expectations of a Federal Reserve interest-rate increase added to investor ⁠caution.

Investors withdrew a net $23.21 billion from global equity funds, the biggest weekly outflow since December ‌17, 2025, LSEG Lipper data ‌showed.

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 ​raised interest rates by 25 basis points on Wednesday and indicated that further increases may be needed to curb inflation fueled by higher ⁠energy costs linked to the war in Iran.

Investors withdrew a net $31.44 billion from US equity funds, a ​fourth consecutive week of outflows. During the same period, European equity funds recorded net outflows of $295 million, while Asian ​funds attracted net inflows of $6.26 billion.

Weekly inflows ‌into equity sector funds climbed to a six-week high of $4.49 billion, led by technology, financials, and consumer discretionary funds, ⁠which attracted $1.94 billion, $1.31 billion, and $621 million, respectively.

Global bond funds attracted $855 million in inflows, the smallest weekly amount since April 1.

Investors withdrew $3.85 billion from high-yield bond funds and $1.1 ⁠billion from euro-denominated bond funds, while adding $2.96 billion to government bond funds and $1.96 billion to ​short-term bond funds.

Money market funds recorded outflows of $77.42 billion, ending a two-week streak of net purchases.

Among commodity funds, gold and other precious metals funds attracted $1.17 billion, marking their ‌ninth weekly inflow in the past 10 weeks. Energy funds posted weekly outflows of $148 million, compared with an inflow ‌of $211 million in the previous week.

In emerging markets, equity funds recorded a second ⁠consecutive week of outflows, totalling $1.61 ‌billion.

Investors also withdrew $167 million ​from bond funds following six consecutive weeks of inflows, according to data covering 29,002 funds.

(Reporting by Gaurav Dogra; Editing by ‌Harikrishnan Nair)

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