equity funds see huge sell off

Equity funds saw their largest redemptions in 2012 so far, as the risk-off sentiment returned amid uncertainty about global growth last week.

equity funds see huge sell off


Following a period of rising yields on Spanish and Italian bonds, equity funds posted outflows of $9.26bn, while high yield bond funds snapped an 18-week inflow streak to post redemptions of $1.4bn.

EPFR Global, which compiled the statistics, said: "Fund groups specialising in riskier asset classes struggled during the second week of April as uncertainty about global growth, the eurozone and the intentions of the US Federal Reserve prompted the bulls to pull in their horns.

"Although sentiment and flows did recover as the week ending 11 April progressed, redemptions from equity funds were broadly based with all major and most of the sub groups posting outflows."

Russia equity funds broke a 10-week positive streak and redemptions from UK equity funds hit a 35-week high, while US equity funds extended their longest outflow period since Q3 last year.

Emerging markets equity funds didn’t escape unscathed either, witnessing their biggest weekly outflows since mid-December.

Cameron Brandt, research director at EPFR Global, said: "March seems to be replacing May as the sell and go-away point, as last year’s rally for developed market funds also started petering out in late march."



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