Funds flow into Software and Consumer Staples in June as global equities rally

Published 17/07/2025, 14:24
© Reuters.

Investing.com - Global long-only funds purchased $57 billion in equities during June as the MSCI AC World Index climbed 4.4%, according to a new report from Bank of America.

Software (ETR:SOWGn) (+$12.9 billion), Consumer Staples (+$12.4 billion), and Real Estate (+$10.1 billion) attracted the largest inflows among global sectors last month. The analysis, which covered 5,647 funds managing $30 trillion in assets, revealed that funds sold Health Care shares worth $8.6 billion despite buying other defensive sectors.

By region, funds added $53.3 billion to U.S. equities as trade tariff tensions eased, while simultaneously reducing exposure to Emerging Markets by $16.4 billion. In Europe, Nestle (NSE:NEST) saw the largest inflow (+$2.3 billion) while SAP experienced the biggest outflow (-$2.1 billion).

U.S. funds significantly increased positions in Capital One (NYSE:COF) with $8.9 billion in purchases, while reducing UnitedHealth (NYSE:UNH) holdings by $4.7 billion. Asian markets showed more modest movements, with Japan’s Sumitomo Mitsui (NYSE:SMFG) FG gaining $0.6 billion in inflows and BYD (HK:1211) attracting $1.3 billion in the Asia Pacific ex-Japan region.

Bank of America’s analysis now distinguishes between "Crowded Positives" (high ownership with positive momentum) including Netflix (NASDAQ:NFLX), Tencent (HK:0700), and SAP (NYSE:SAP), versus "Crowded Negatives" which include Procter & Gamble (NYSE:PG), LVMH (PA:EPA:LVMH), and several others showing negative momentum despite high institutional ownership.

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