A wave of equity selling tied to quarter-end rebalancing could total as much as $165 billion before June closes, according to JPMorgan strategists. U.S. defined benefit pension funds managing approximately $9.6 trillion in assets could account for around $55 billion in equity selling. Japan's Government Pension Investment Fund, with approximately $1.9 trillion in assets, is estimated to sell around $60 billion in global equities. Norway's Norges Bank, managing a $2.1 trillion sovereign wealth fund, is seen selling approximately $40 billion in equities. The Swiss National Bank is estimated to sell around $25 billion, though a further increase in its equity allocation to 30% would reduce that figure to approximately $8 billion. Balanced mutual funds operating on stricter monthly rebalancing schedules present a partial offset, with estimated net equity buying of approximately $15 billion.
Schweizerische NationalbankArticle mentions SNB is estimated to sell ~$25B in equities as part of quarter-end rebalancing, which could pressure its portfolio returns.
JPMorgan Chase & Co