Global equity funds decline over 20% this year

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.