Dec 20 (Reuters) - Investors liquidated equity funds at the fastest rate in 15 years in the week to Dec. 18, driven by caution and profit-taking in anticipation of a hawkish outcome from the U.S. Federal Reserve's policy meeting after a recent market rally. According to LSEG Lipper data, investors divested a net $37.22 billion worth of global equity funds in the week, the largest amount for a single week since September 2009. The Fed cut rates as expected on Wednesday and signaled fewer rate cuts and projected higher inflation for next year, prompting a sell-off in global equities after Chair Jerome Powell emphasized the need for caution. The MSCI World index <.MIWD00000PUS> has declined more than 3% this week and is set for its sharpest weekly fall in three and a half months. Investors offloaded a robust $50.2 billion worth of U.S. equity funds, logging the biggest weekly net sales since September 2009. European and Asian funds, however, experienced $9.21 billion and $1.74 billion worth of net purchases. Meanwhile, global sectoral funds experienced their largest weekly outflow in 14 weeks, totaling $2.65 billion, with the tech and healthcare sectors facing net disposals of $1.37 billion and $737 million respectively. Global bond funds continued to attract investor interest for a 52nd consecutive week, securing about $2.36 billion in net purchases, albeit the lowest amount in eight months. Corporate and loan participation funds drew substantial inflows of $2.01 billion and $1.12 billion, respectively. Meanwhile, government bond funds experienced $594 million in outflows, marking a third consecutive week of net sales. Money market funds recorded about $51.02 billion in net sales, marking the fourth outflow in five weeks. In the commodities sector, gold and precious metal funds saw $1.67 billion withdrawn, the largest since July 2022, while energy funds experienced $215 million in outflows. According to data covering 29,603 funds, emerging market equities faced increased selling pressure, with equity funds recording their sharpest net outflow in about a year at $5.27 billion, and bond funds also seeing $710 million in net outflows. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Fund flows: Global equities, bonds and money markets https://tmsnrt.rs/3Jt3wjr Fund flows: Global equity sectors https://tmsnrt.rs/3J5InKT Weekly flows into global bond funds https://tmsnrt.rs/44OuJ93 Fund flows: EM equities and bonds https://tmsnrt.rs/3ysJzD6 ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Hugh Lawson) ((gaurav.dogra@thomsonreuters.com; +91(080) 67496197;)) Keywords: GLOBAL MARKETS/FLOWS (GRAPHIC)
