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Global equity funds log biggest outflows in three months on Mideast tensions

June 21, 2025 00:00:00


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 US trade policies dampened investor sentiment, reports Reuters.

Investors divested a net $19.82 billion from global equity funds during the week, according to LSEG Lipper data.

US equity funds led regional outflows with net sales of $18.43 billion, their steepest withdrawal in three months. Asia saw outflows of $2.86 billion, while Europe recorded net inflows of $640 million.

Despite broader outflows, equity sectoral funds attracted $573 million in net inflows, the fourth straight week of purchases.

Tech and industrials led sectoral gains with a net $1.5 billion and $752 million in inflows, respectively, while financials saw nearly $1.5 billion of net outflows.

Global bond funds were popular for the ninth consecutive week, attracting around $13.13 billion in net inflows.

Euro-denominated bond funds drew $3.07 billion in net inflows, following $7.97 billion of inflows in the prior week. Investors also lapped up short-term and high-yield bond funds, which garnered $2.93 billion and $1.94 billion, respectively.

In contrast, investors pulled out a net $2.7 billion from money market funds after about $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 $2.84 billion in net inflows.

Emerging market bond funds attracted net inflows of $2.5 billion, with demand extending to an eighth successive week.


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