Investing
Global equity funds decline over 20% this year
Global Banking & Finance Review®
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(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.
(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.
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.
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.
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.
(Reporting By Patturaja Murugaboopathy and Gaurav Dogra in Bengaluru; Editing by Vidya Ranganathan and Bernadette Baum)
Global equity funds are investment funds that primarily invest in stocks of companies worldwide. They aim to provide capital appreciation and are subject to market risks.
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. It is typically measured annually.
Commodity funds are investment funds that invest in physical commodities like gold, oil, or agricultural products. They can provide diversification and hedge against inflation.
A bond fund is a mutual fund or exchange-traded fund that invests in bonds. These funds aim to provide income through interest payments and can vary in risk based on the bonds held.
A money market fund is a type of mutual fund that invests in short-term, low-risk securities. They are designed to offer high liquidity with a low level of risk.
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