Economy April 6, 2026

Global Equity Funds Record Second Consecutive Week of Net Inflows as Tensions Show Signs of Easing

Investors put $15.02 billion into global equities in the week to April 1 amid hopes of de-escalation, even as geopolitical rhetoric intensifies

By Ajmal Hussain
Global Equity Funds Record Second Consecutive Week of Net Inflows as Tensions Show Signs of Easing

Global equity funds attracted a net $15.02 billion in the March 26-April 1 period, marking a second straight week of inflows. The movement came alongside sizeable rotations out of bond and money market funds and continued withdrawals from emerging market assets, according to combined fund data covering 28,838 funds.

Key Points

  • Global equity funds attracted a net $15.02 billion in the March 26-April 1 period, marking a second straight week of inflows - equities sector impacted.
  • Bond funds experienced net outflows of $19.58 billion, the first weekly net selling since December 31, 2025; high-yield and euro-denominated bonds were particularly affected - fixed income markets impacted.
  • Investors pulled $16.93 billion from money market funds while modestly adding $78.33 million to gold and precious metals funds; emerging market equities and bonds saw continued withdrawals - money markets, commodities, and emerging markets impacted.

Global equity funds saw net purchases totalling $15.02 billion in the week ending April 1, extending a run of investor inflows for a second consecutive week. The prior seven-day period had recorded larger inflows of roughly $40.14 billion, according to LSEG Lipper data.

Investor appetite for U.S. equities remained pronounced in the most recent week, with net inflows into U.S. equity funds of $7.05 billion. That followed a substantially larger $36.95 billion of net buying in the prior week. European and Asian equity funds also enjoyed net purchases, receiving $3.25 billion and $2.96 billion respectively in the March 26-April 1 window.

At the same time, fixed income funds experienced significant redemptions. Investors withdrew a net $19.58 billion from bond funds in the most recent week, a shift that made them weekly net sellers for the first time since December 31, 2025. Within that broader outflow, high-yield bond funds saw net withdrawals of $5.1 billion, while euro-denominated bond funds lost about $3 billion of investor money.

Money market funds continued to face selling pressure, as investors pulled $16.93 billion for the second straight week of net redemptions.

Commodities linked to precious metals showed a modest reversal of selling, with gold and other precious metals funds receiving net purchases of $78.33 million in their first weekly inflow since February 25.

Emerging market assets remained out of favour. Global emerging market bond funds saw net withdrawals of approximately $3.29 billion, while emerging market equity funds experienced net redemptions of about $1.98 billion, marking the fourth consecutive week of outflows from those asset classes. The data referenced covers a combined 28,838 funds.


Geopolitical developments were reflected in investor positioning. The report noted heightened tensions between the U.S., Israel and Iran, and referenced actions by U.S. President Donald Trump over the weekend that increased pressure on Iran - including a threat to target its power plants and bridges on Tuesday if the strategic Strait of Hormuz is not reopened. Despite those warnings, investors continued to add to global equity exposures during the week.

The weekly flows show a combination of renewed interest in equities, persistent redemptions from bond and money market funds, and ongoing caution toward emerging market assets.

Risks

  • Heightened geopolitical rhetoric - U.S. President Donald Trump threatened to target Iranian infrastructure if the Strait of Hormuz is not reopened - this creates uncertainty for risk assets and can affect energy and transport-sensitive sectors.
  • Sustained outflows from bond funds, including high-yield and euro-denominated debt, signal potential liquidity and valuation pressure in credit markets - fixed income and corporate borrowers are affected.
  • Persistent withdrawals from emerging market equity and bond funds for a fourth straight week suggest continued investor caution toward those markets, increasing vulnerability to capital flow reversals in emerging economies.

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