Investors Pivot Amid Equity Market Volatility

Global equity fund inflows have witnessed a significant drop in the week leading up to August 20, amidst growing caution over the selloff in major technology stocks. The anticipation surrounding Federal Reserve Chair Jerome Powell's speech at the annual Jackson Hole symposium further contributed to risk aversion among investors.

Data from LSEG Lipper illustrated a sharp reduction with global equity funds garnering just $2.27 billion, a steep decline from the previous week's impressive $19.29 billion net purchase. U.S. equity funds particularly struggled, experiencing a net outflow of $2.4 billion, partially reversing the prior week's net inflow of approximately $8.76 billion.

Despite the declines, global bond funds remained attractive as investors infused a net $18.82 billion for the 17th consecutive week. High yield and short-term bond funds saw substantial inflows, indicating a strategic shift towards safer investment vehicles amidst market uncertainty.

(With inputs from agencies.)