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

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

(Reuters) -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 $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 $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. Investors, however, withdrew $234 million from equity funds, according to data for 29,726 funds.

(Reporting by Gaurav Dogra in Bengaluru; Editing by Harikrishnan Nair)