With continuing concern over the timetable of tapering by the Fed, investors took some $2 billion out of equity funds for the fifth week in a row, according to EPFR Global in its Friday report. They also pulled about $375 million from bond funds, while pumping $31 billion flow into money-market funds.
Dividend-equity funds in the week ended Dec. 4, though, experienced some inflows, which has been the case for eight of the past 10 weeks.
Country funds remained active, as investors snapped up equity funds in Italy, Spain and Germany.
Many emerging markets saw net redemptions. The Latin American and EMEA equity categories posted outflows of $220 million. Since late February, emerging markets equity funds have had more than $42 billion in net redemptions.
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Funds focused on China and Korea did see some inflows last week.
“Current account deficits in South Africa and Turkey, political tensions in North Africa and parts of the Middle East, weaker oil prices and Russia’s stalled economy are among the factors contributing to this outflow streak,” explained Cameron Brandt, director of the Boston-based research group.
Europe-focused funds took in more than $1 billion for the third consecutive week; the inflow streak started in late June. Flows into Germany equity funds, for instance, hit their highest weekly level in more than 17 months.