Global equity funds experienced a second consecutive week of inflows, driven by optimism surrounding potential easing in tariff tensions, which bolstered demand for risk assets. According to LSEG Lipper data, these funds saw a net inflow of $9.11 billion, following a $5.58 billion net purchase the previous week.
European equity funds attracted $8.08 billion, albeit down from the $11.79 billion net purchase the prior week. Asian funds saw inflows of $3.65 billion, while U.S. funds faced $1.35 billion in outflows, a significant reduction from the $10.44 billion sell-off the week before.
Sector equity funds remained out of favor for the fourth week, with investors withdrawing $1.6 billion. The financial, consumer staples, and healthcare sectors saw outflows of $1.27 billion, $425 million, and $353 million, respectively.
Bond funds experienced a net purchase of $1.94 billion, as the recent sell-off in the U.S. bond market showed signs of easing. Dollar-denominated mortgage bond funds received $4.79 billion in net inflows after three weeks of outflows. Short-term bond funds gained $5.59 billion, while high-yield bond funds saw a reduction of $1.61 billion.
Global money market funds rebounded with a $15.83 billion net inflow, following a massive $113.12 billion sell-off the previous week. Gold and precious metals commodity funds continued to be popular, marking an eleventh consecutive week of net purchases totaling $676 million.
