Technology funds swung to outflows as U.S. equity funds shed $3.53 billion, bond-fund inflows slowed, and U.S. money market funds saw their biggest withdrawal since April 15.
Global equity fund inflows slowed sharply in the week to June 24, with investors buying a net $7.51 billion, down about 86% from $55.53 billion a week earlier, as worries over debt-funded technology spending and a hawkish Federal Reserve policy outlook damped risk appetite. European and Asian equity funds still attracted net inflows of $6.28 billion and $2.95 billion, though both were below the previous week's levels, while U.S. funds posted $3.53 billion in outflows, according to LSEG Lipper data. Technology sector funds swung to heavy outflows, while financial, industrial and consumer discretionary funds also recorded weekly withdrawals. Bond funds continued to attract money globally, though U.S. bond-fund inflows slowed to an eight-week low of $7.33 billion, led by short-to-intermediate investment-grade funds, general domestic taxable fixed-income funds and municipal debt funds. U.S. money market funds lost $25.74 billion, their biggest weekly outflow since April 15. Commodity funds remained under pressure, with gold and other precious metal funds logging a sixth consecutive weekly outflow and energy funds also slipping into net sales. In emerging markets, equity fund outflows stretched to a ninth straight week, while bond funds returned to inflows for the first time in three weeks, in data covering 28,875 funds.