Global Equity Funds See $19.82 Billion Outflows Amid Rising Uncertainty

On June 20, Global equity funds saw major withdrawals for the week ending. Investors drawback their funds, which are net of $19.82 billion. This is the largest outflow in the past three months. The reasons for this sudden trading tension are mainly due to geopolitical instability in the Middle East and U.S trade policy. According to LSEG Lipper data, investors grew cautious and moved their capital to safer assets. Investors are now looking at gold and silver for their next investment. 

U.S. and Asia Lead Global Equity Fund Withdrawals

U.S. equity funds recorded the biggest pullback, with investors selling $18.43 billion worth of holdings. This marks their steepest exit in three months. Asia followed with $2.86 billion in net outflows. Europe stood out by bucking the trend. It posted a net inflow of $640 million into equity funds. Despite the broad outflows, sector-focused equity funds saw some positive momentum. These funds attracted $573 million in net inflows. This marks the fourth straight week of gains. Technology and industrials stood out. Tech funds pulled in $1.5 billion, while industrials followed with $752 million. On the other hand, financial sector funds lost almost $1.5 billion in net assets.

Bond Funds Remain Strong for Ninth Week

Bond funds continued their winning streak. For the ninth week in a row, they saw solid inflows totaling $13.13 billion. Euro-denominated bond funds posted $3.07 billion in net inflows. This follows the previous week’s $7.97 billion surge. Investors also chased yield-focused options. Short-term bond funds brought in $2.93 billion, while high-yield bonds gained $1.94 billion. These steady inflows show that investors still prefer fixed-income options amid global equity volatility. Emerging market bond funds also remained in favor. They attracted $2.5 billion in net inflows. This marks the eighth straight week of investment into these funds.

Money Market Funds Lose Steam

Money market funds faced another week of losses. Investors pulled out $2.7 billion in net assets. This comes after a $4.1 billion outflow in the previous week. Meanwhile, interest in precious metals spiked. Gold and other precious metals commodity funds received $2.84 billion in inflows. This marks the highest level in two months. Rising global tension and investor caution pushed money into safer assets like gold.

Sectoral Resilience Offsets Broader Global Equity Loss

Even as global equity funds faced record losses, sectoral funds gave some relief. For the fourth week running, these funds posted net inflows. Technology and industrials stayed strong. However, financials dragged the sector with heavy withdrawals. Data from 29,726 funds showed that investors pulled $234 million from equity funds. Despite that, bond funds and commodity-based investments absorbed some of the fleeing capital. The data shows that while risk appetite has declined, investor interest remains focused on select sectors and safe asset classes. Sectoral strength and fixed-income flows reveal that all is not bleak in the current global equity scenario.

The global equity market saw sharp shifts in investor mood during the week ending. Bond funds held their ground with their ninth straight weekly gains, showing the market’s shift to stability and income. Gold, too, saw high demand as investors sought safety. Despite volatility in global equity funds, capital continues to seek value in bonds and precious metals. The week’s data clearly reflects investor caution, selective optimism, and an active move toward lower-risk instruments.