Global equity funds recorded net outflows of $19.82 billion for the week ended June 18, the largest in three months, as escalating Middle East tensions and lingering uncertainty over U.S. trade policies dampened investor sentiment.
Investors divested a net US$19.82 billion from global equity funds during the week, according to LSEG Lipper data.
U.S. equity funds led regional outflows with net sales of US$18.43 billion, their steepest withdrawal in three months. Asia saw outflows of US$2.86 billion, while Europe recorded net inflows of US$640 million.
Despite broader outflows, equity sectoral funds attracted US$573 million in net inflows, the fourth straight week of purchases.
Tech and industrials led sectoral gains with a net US$1.5 billion and US$752 million in inflows, respectively, while financials saw nearly US$1.5 billion of net outflows.
Global bond funds were popular for the ninth consecutive week, attracting around US$13.13 billion in net inflows.
Euro-denominated bond funds drew US$3.07 billion in net inflows, following US$7.97 billion of inflows in the prior week. Investors also lapped up short-term and high-yield bond funds, which garnered US$2.93 billion and US$1.94 billion, respectively.
In contrast, investors pulled out a net US$2.7 billion from money market funds after about US$4.1 billion of net sales in the previous week.
Demand for gold and precious metals commodity funds surged to the highest in two months during the week as these funds received US$2.84 billion in net inflows.
Emerging market bond funds attracted net inflows of US$2.5 billion, with demand extending to an eighth successive week. Investors, however, withdrew US$234 million from equity funds, according to data for 29,726 funds.
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Reporting by Gaurav Dogra in Bengaluru; Editing by Harikrishnan Nair
