Investors bailing out of stock funds: Report

Investors worldwide pulled money out of stock funds last week at levels last seen in mid-October, according to the Cambridge, Mass.-based Emerging Portfolio Fund Research Inc. Globally, investors yanked $10.4 billion out of stock funds and $568 million out of bond funds during the week ended Feb. 27. U.S. equity funds made up more than 60% of the total equity outflows worldwide. At the same time, U.S. bond funds were the only fixed-income group to post inflows, taking in $831 million, the firm reported. Redemptions from U.S. equity funds were spread across all capitalization categories and investment styles, EPFR said. Outflows from European, Middle Eastern and African regional funds hit 16 week highs. Meanwhile, outflows from Asian equity funds — excluding Japan —hit a 17 week high. It was the second consecutive week that all of the equity fund groups focused on developed markets tracked by EPFR experienced outflows. Among emerging markets, Latin American equity funds were the only stock funds to post inflows. The funds saw an influx of $795 million. The commodities sector took in another $556 million and marked 11 consecutive weeks of inflows.