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Precy Dumlao, Opalesque Asia:

Investors have started to pull out their investments ahead of U.S. Federal Reserve meeting on 17th and 18th December, which will discuss whether to wind down its quantitative easing program (or QE3), according to EPFR, a fund flows data provider.

Data from EPFR Global-tracked Bond Funds showed that investors’ redemptions reached $1.6bn as at end Dec. 11th, the highest weekly total since late August. The amount consisted of both Emerging Markets Equity and Bond Funds. Outflows from Commodities Sector Funds climbed to levels last seen in early July while commitments to Floating Rate Bond Funds jumped to a 10 week high.

"Interpreting this week’s equity fund flows is complicated by the fact that a number of major US Equity Funds went ex-dividend on Wednesday, with sizable capital gains distributions showing up as outflows until they are reinvested on Thursday which will appear as inflows next week. In addition, there were large unexplained flows – in excess of $3 billion – into several of a European fund manager’s Europe Regional Equity Funds. Some of the inflows appear to be reallocations from Global products but the source of a large portion of the inflows cannot be confirmed." observed EPFR Global Managing Director Ian Wilson.

Overall, Bond Funds posted a collective net outflow of $4.2bn for the week while Equity Funds absorbed $1.37bn and Money Market Funds $8.8bn, according to EPFR.......................

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