(Reuters] – Massive outflows of global equity funds occurred in the week ended April 20th, due to concern over the growth caused by the Russia-Ukraine War, rate hikes at major central banks, and a rise the real yields. Refinitiv Lipper reports that global equity fund investors sold off assets worth $15.21 trillion in the week reported. This was the largest weekly outflow since Dec 15.

Graphic: Fund flows- Global equities bonds and money market, https://fingfx.thomsonreuters.com/gfx/mkt/byvrjnrmqve/Fund%20flows-%20Global%20equities%20bonds%20and%20money%20market.jpg

On Tuesday, the International Monetary Fund slashed its global economic growth forecast by almost a whole percentage point. The $16.06 billion in U.S. equity funds and the $1.35 billion in European funds were withdrawn by investors. However, $1.41 billion was poured into Asian funds. Health care, utilities and mining were the top three sectors that received $0.99, $0.74 and $0.37 respectively.

Graphic: Fund flows- Global equity sector funds, https://fingfx.thomsonreuters.com/gfx/mkt/lbvgnyojjpq/Fund%20flows-%20Global%20equity%20sector%20%20funds.jpg

Weekly outflows from global bond funds rose to $12.76 Billion for the fifth week, fueled by rising hopes that Fed would become more hawkish.

Some traders stated that investors were scared of Nomura’s recent call. Nomura analysts had predicted that the Fed will raise rates by 75basis points in July and June, in addition to a move of 50basis points in May. Inflation-protected funds received a ninth weekly inflow of $172million. Global short- and long-term bond funds and high yield bond funds saw outflows of $5.45 and $2.76 trillion, respectively.

On Tuesday, the 10-year Treasury Inflation Protected Securities (TIPS), yields briefly turned positively for the first-time since March 2020.

Graphic: Global bond fund flows in the week ended April 20, https://fingfx.thomsonreuters.com/gfx/mkt/egpbkemjqvq/Global%20bond%20fund%20flows%20in%20the%20week%20ended%20April%2020.jpg

Meanwhile, the weekly outflows of money into the market jumped to $71.98 billion for nine consecutive weeks.

Commodities Fund data indicated that the precious metals funds earned $784Billion in the fourteenth week straight. Energy funds experienced an outflow $328M.

Analysing 24,182 emerging markets funds revealed that investors sold both bond and equity funds last week, with funds discharging for $458 million to about $1 billion.

Graphic: Fund flows- EM equities and bonds, https://fingfx.thomsonreuters.com/gfx/mkt/lgvdwgljxpo/Fund%20flows-%20EM%20equities%20and%20bonds.jpg