Pension and sovereign wealth funds are set to offload about $200 billion of equities as they rebalance their portfolios, posing a risk for global shares, according to J.P. Morgan Chase.

It would be the most negative quarterly adjustment since the coronavirus pandemic hit, strategists led by Nikolaos Panigirtzoglou said Tuesday. The overall figure stems from calculations spanning U.S. defined benefit plan portfolios, Japan’s Government Pension Investment Fund and Norway’s oil fund.

“This negative rebalancing flow becomes even more problematic given this month’s sharp decline in equity market depth,” they wrote in a note.

Institutions tend to adjust portfolios each quarter to maintain their target asset allocations. A gauge of global stocks has climbed about 10% since the end of June, exceeding returns from fixed income

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