Global equity funds decline over 20% this year

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© Reuters. FILE PHOTO: Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S. June 14, 2022. REUTERS/Brendan McDermid/File Photo

(Reuters) – Global equity funds have shed over 7% this month due to a slump in stock prices as higher inflation levels fuel worries about more aggressive policy tightening by major central banks.

Global bond funds have declined 3.5% on average, while money market funds fell 1.4%, data from Refinitiv Lipper showed.

With the sharp declines this month, global equity funds have lost one-fifth of their net asset value on average, the data showed.

On the other hand, commodity funds were relatively resilient, posting a gain of 0.4% this month.

Graphic: Top decliners among global mutual funds in June – https://graphics.reuters.com/GLOBAL-MARKETS/znvnegdojpl/chart.png

The analysis is based on funds that have net assets of at least $1 billion.

The AEAM Strategic Liability Matching Fund, Daiwa iFree Leveraged NASDAQ100 and Lansforsakringar Fastighetsfond A were the biggest losers this month, declining 25.4%, 16.6% and 15.8% respectively, according to Lipper calculations.

Graphic: Top performers among global mutual funds in June – https://graphics.reuters.com/GLOBAL-MARKETS/lgpdwbmeyvo/chart.png

On the other hand, Chinese funds that invest in renewable energy firms led the gainers in the list.

The Orient New Energy Vehicles Mixed Fund, China Univ CSI New Energy Veh Indus Index A and Fullgoal CSI New Energy Vehicle Index Type Fund A have all gained about 13% each this month.

Graphic: Global mutual funds’ performance – https://graphics.reuters.com/GLOBAL-MARKETS/zjvqklqlkvx/chart.png

Electric car sales are rocketing in China’s roughly $500 billion auto market, the world’s biggest.

May sales of new energy vehicles in China, which include battery-powered electric vehicles, plug-in petrol-electric hybrids and hydrogen fuel-cell vehicles, rose 49.6% month-on-month, according to the China Association of Automobile Manufacturers.

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