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2Q22 ending with more than a whimper
2Q22 ending with more than a whimper

Against a backdrop of market volatility, slowing economic growth in Europe and North America, gasoline prices and mortgage rates in the US firmly above $5 a gallon and 5%, respectively, continued fighting in Ukraine and ongoing Covid-related disruptions to China-based supply chains, investors pulled over $45 billion from EPFR-tracked Equity, Bond, Alternative and Balanced Funds during the third week of June.

ESG funds finding the going hard in 2Q22
ESG funds finding the going hard in 2Q22

EPFR-tracked Equity Funds extended their longest run of outflows since 3Q19 during the week ending May 18 as slowing global growth, tighter monetary policy in the US, war in Ukraine and widespread lockdowns in China kept investors on the defensive. Bond, Money Market, Balanced and Alternative Funds also recorded outflows going into the second half of May.

Shell manoeuvring on fractured ground
Shell manoeuvring on fractured ground

Markets have reacted coolly to Shell’s attempts to win over critics by simplifying its structure and moving headquarters from the Netherlands to the UK. The move takes one of the world’s largest private oil companies around, over – and, possibly, into – some of the major fault lines in Europe’s economic landscape: high versus low taxation, the pace of change needed to meet key climate goals, and the UK versus the European Union it voted to leave.

Oil bonds still have fuel in the tank – but how long will it last?
Oil bonds still have fuel in the tank – but how long will it last?

Fixed income markets are abuzz about the spectacular demand for new green bonds. Flows into fixed income funds with socially responsible investing (SRI) or environmental, social and governance (ESG) mandates have soared, whereas those tracked by EPFR have seen their Assets under management increase sevenfold since the beginning of 2019.