Global equity funds gain weekly inflows after big sell-off

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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.

(Graphic: https://fingfx.thomsonreuters.com/gfx/mkt/mypmnrjgdvr/Fundper cent20flows-per cent20Globalper cent20equitiesper cent20bondsper cent20andper cent20moneyper cent20market.jpg)

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.

(Graphics: https://fingfx.thomsonreuters.com/gfx/mkt/gkplgejdmvb/Fundper cent20flows-per cent20Globalper cent20equityper cent20sectorper cent20funds.jpg)

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.

(Graphics: https://fingfx.thomsonreuters.com/gfx/mkt/zdpxoeandvx/Globalper cent20bondper cent20fundper cent20flowsper cent20inper cent20theper cent20weekper cent20endedper cent20Juneper cent2022.jpg)

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.

(Graphics: https://fingfx.thomsonreuters.com/gfx/mkt/mopanrylnva/Fundper cent20flows-per cent20EMper cent20equitiesper cent20andper cent20bonds.jpg)

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