LONDON, Dec 30 (Reuters) - Global equity funds are set for their biggest year of equity redemptions since 2008, with $1 billion flowing out in the past week, Bank of America Merrill Lynch said on Friday.
World stocks and commodities are headed for positive returns this year, thanks in part to investors' enthusiasm for the $1-trillion stimulus plan mooted by U.S. President-elect Donald Trump and signs of economic recovery in the United States and the euro zone.
That has led many to call the end of the three-decade old bond bull run, with government bonds the only major asset class to end 2016 in the red.
However, the year as a whole has seen $93 billion in outflows, the biggest since 2008, according to BAML. Its data, which tracks fund flows through Wednesday, showed equities continuing to lose ground in the past week, with U.S. funds shedding $1.6 billion, the biggest weekly loss in eight weeks.
Japanese equities, which have been pummelled by yen strength, lost $2.4 billion and emerging stocks lost $2.5 billion, their second straight week of outflows.
Bond funds, on the other hand, took in new money for the eighth consecutive year and in the past week received $3.4 billion, breaking an eight-week streak of outflows, BAML said.
Commodities have racked up 50-60 percent gains in 2016 but the BAML data showed small outflows of $500 million from commodity funds in the past week. (Reporting by Sujata Rao)