Global MF investors could sell $350-bn worth equities this year: Barclays

MF investors have been net sellers of equities this month, for the first time since August 2020, though equity outflows are tiny compared to the record $1.3-trn inflows since 2020, Barclays said

Barclays said on Friday global mutual funds investors could sell equities worth a further $350 billion this year, unless fears of recession diminish, due to an uncertain macro backdrop and monetary policy tightening.

Investors have been selling equities in the wake of rising inflation, prompting economies to hike interest rates. Russia's invasion of Ukraine added to the inflationary pressures amid a surge in energy and commodity prices, increasing costs to companies as it hurt their valuations along with volatility in global financial markets.

Barclays said equity outflows amounted to an average of 2.6% of mutual funds' assets under management (AUM) in previous