Global Equity Funds See Highest Inflows in Over Two Months

Global equity funds recorded their most significant weekly inflow in nearly two and a half months during the week ending March 25. This surge followed a decision by the United States to delay strikes on energy infrastructure in Iran, which temporarily eased fears of a major oil supply shock and sparked hopes for a de-escalation in regional tensions. According to LSEG Lipper data, investors funneled a net $37.77 billion into global equity funds, marking the largest weekly purchase since mid-February and ending a two-week period of selling. The United States led the charge with $37.24 billion in net inflows, reversing a three-week divestment trend. Asian markets also benefited from $5.23 billion in new capital, while European funds faced a different reality, recording $7.52 billion in outflows. Despite the weekly gains, global equities experienced a 1.6% decline on Thursday. The drop came after officials in Iran denied that any talks with Washington were taking place, casting doubt on the likelihood of a swift ceasefire in the ongoing month-long conflict. Mark Haefele, chief investment officer at UBS Group AG Global Wealth Management, advised a cautious approach regarding the restoration of energy flows through the Strait of Hormuz. However, he noted that significant long-term economic damage is not expected in the base-case scenario. > This means long-term investors with well-diversified portfolios should stay invested. Interest in debt-linked assets softened, with global bond funds attracting only $2.53 billion, the lowest level in nearly three months. While high-yield and euro-denominated bond funds saw combined outflows exceeding $6.8 billion, short-term bond funds reached a record $11.1 billion in inflows. Conversely, money market funds saw a massive exit of $64.78 billion, ending an eight-week streak of net purchases. Precious metals, including gold, faced their fourth consecutive week of outflows, totaling $3.14 billion. Emerging markets also remained under pressure, with investors withdrawing $2.78 billion from equity funds and $1.73 billion from bond funds across nearly 29,000 tracked funds.