U.S. equity funds experienced their third consecutive week of outflows because investors remained worried about President Trump’s unpredictable trade policies and the upcoming jobs report. LSEG Lipper data reveals U.S. equity funds experienced $7.42 billion in redemptions during the week of June 4 after investors withdrew $5.39 billion the previous week.
European equity funds received investor money for eight consecutive weeks because investors anticipated an ECB rate reduction and reacted to lower inflation figures. The European regional fund sector received $2.72 billion in new investments while Asian equity funds received $1.84 billion in fresh money.
The sector-focused funds received $667 million in investments during this period with technology and industrials leading the sector by attracting $909 million and $878 million respectively. Financial and healthcare funds experienced losses of approximately $800 million each.
The bond fund market experienced strong investor demand which resulted in $16.17 billion in weekly inflows for seven consecutive weeks. The high-yield bond market received $2.93 billion in investments while dollar-denominated short- and medium-term bond funds received their largest inflows since April 2024 amounting to $4.66 billion.
Investors chose to place their money in safe-haven assets during this period. Money market funds received their largest net inflow of $108.5 billion during the past five months because investors became more cautious. The weekly inflow of $1.69 billion into gold and precious metals funds represented their most significant intake since late February.
Emerging markets showed a mixed picture. Bond funds maintained their sixth consecutive week of net purchases with $1.99 billion while equity funds received $191 million in new investments. The current market trends demonstrate how investors worldwide adjust their investments based on trade tensions and economic uncertainties which influence short-term market expectations.
