Global investor sentiment turned sharply risk-off last week as global equity funds saw net outflows of $19.82 billion, their biggest weekly withdrawal since March, according to LSEG Lipper data for the week ending June 18.
Key Highlights:
📉 U.S. equity funds led with $18.43B in outflows, the steepest in three months.
📉 Asia: $2.86B outflow
📈 Europe bucked the trend with $640M in net inflows
Despite broad selloffs, sector equity funds attracted $573M — marking a fourth straight week of inflows.
🖥️ Tech: +$1.5B
🏭 Industrials: +$752M
🏦 Financials: –$1.5B
Flight to Safety: Bonds & Commodities in Favor
💵 Global bond funds extended their winning streak to nine consecutive weeks, pulling in $13.13B, led by:
Euro-denominated bonds: +$3.07B
Short-term bonds: +$2.93B
High-yield bonds: +$1.94B
💰 Precious metals funds, primarily gold-focused, saw their highest inflows in two months at $2.84B, as geopolitical hedging increased.
🌍 Emerging market bond funds continued to shine with $2.5B in net inflows, now on an 8-week positive streak, while EM equity funds faced minor outflows of $234M.
📉 Money market funds, typically a haven in volatile times, saw $2.7B in net redemptions, a reversal from $4.1B outflows the week prior.
Investor takeaway:
Mounting geopolitical risks, a murky U.S. trade policy outlook, and persistent macro volatility are pushing investors away from equities — especially in the U.S. and Asia — and into bonds, commodities, and select defensives. Tech and industrials remain relative bright spots, while financials take a hit.
