Global equity funds gain weekly inflows after big sell-off


Global equity funds secured inflows in the week ended June 22, following a sharp sell-off the previous week as a drop in commodity prices eased investor fears of a rapid inflation.

According to Refinitiv Lipper, investors secured $7.51 billion in global equity funds from net purchases. That compares to the $30.49 billion pullback the previous week, which was the biggest net selloff since at least July 2020.

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The MSCI All-Country Share Index gained more than 2% this week after a three-week losing streak that wiped out 10% of the index’s value.

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Some analysts have said there is a chance central banks will avoid aggressive rate hikes in the coming months as recession fears grow.

US and Asian equity funds attracted inflows of $11.38 billion and $7.52 billion, respectively, but European funds suffered outflows of $7.79 billion.

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Meanwhile, bond funds saw large outflows, with a net worth of $29.96 billion, as selling continued for a third week.

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Global short- and mid-term bond funds saw outflows of $8.71 billion, the largest since at least July 2020. High-yield funds also lost $5.16 billion in net sales, but public funds attracted $2.64 billion in inflows.

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Investors also pulled out $6.7 billion in money market funds, after unloading $61.38 billion the previous week.

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In commodities, investors bought precious metals funds worth $247m, marking the first weekly net buying in four weeks, while energy funds made meager purchases of $61m. dollars.

An analysis of 24,320 emerging markets funds showed bond funds saw outflows of $5.3 billion, the highest amount since at least July 2020, but equity funds got $453 million , marking the first entry in three weeks.

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