2026-03-16 00:56:00
Global equity funds recorded their biggest outflows in months as oil supply fears and geopolitical tensions drove investors toward safer assets.
Reuters had the round up.
Summary:
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Global equity funds saw $7.05 billion in outflows during the week to March 11.
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The withdrawals were the largest since mid-December 2025.
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Rising oil prices and supply disruptions in the Strait of Hormuz weighed on sentiment.
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U.S. and European equity funds recorded the biggest withdrawals.
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Asian equity funds attracted inflows despite global volatility.
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Investors shifted toward safer assets such as money market and short-term bond funds.
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Emerging markets also saw renewed selling pressure.
Global equity funds recorded their largest weekly outflows in nearly three months as investors reacted to rising geopolitical risks and surging oil prices linked to the ongoing conflict involving the United States, Israel and Iran.
Data from LSEG Lipper showed that investors withdrew approximately $7.05 billion from global equity funds during the week ending March 11. The outflows marked the largest weekly withdrawal since mid-December 2025, when funds saw a far larger $46.68 billion exit.
The shift in investor sentiment comes as energy markets face severe disruption following attacks on shipping routes in the Persian Gulf and around the Strait of Hormuz. The strategic corridor handles roughly one-fifth of global oil supplies, and disruptions to traffic there have triggered fears of sustained supply shortages.
Oil markets reacted sharply to the uncertainty, with Brent crude climbing well above $100 per barrel as traders grappled with what some market participants described as one of the most significant disruptions to global oil flows in recent history.
Rising energy prices have intensified concerns about inflation and the potential impact on global economic growth, prompting investors to trim exposure to risk assets.
The data showed particularly strong outflows from U.S. and European equity funds. U.S. equity funds saw net withdrawals of roughly $7.77 billion, while European funds experienced $7.71 billion in outflows. In contrast, Asian equity funds attracted inflows of about $6.15 billion, suggesting some investors are selectively reallocating toward the region.
Sector-level flows also reflected a defensive shift. Financial and healthcare equity funds experienced the largest withdrawals, with net sales of $2.31 billion and $1.31 billion respectively. Industrial sector funds, however, saw inflows of around $1.31 billion.
Meanwhile, global bond fund inflows slowed significantly. Net purchases totaled about $5.72 billion, the smallest weekly inflow in ten weeks. High-yield bond funds suffered outflows of $3.17 billion, the largest since April 2025, as investors reduced exposure to riskier credit.
Short-term bond funds attracted strong demand, recording $5.75 billion in inflows as investors sought safer assets.
Money market funds also saw continued inflows, drawing $6.93 billion during the week and extending a seven-week streak of net purchases.
Despite the broader flight to safety, commodity flows were mixed. Investors withdrew $2.84 billion from gold and precious-metals funds, marking the third weekly outflow in four weeks.
Emerging markets were also affected by the risk-off shift, with equity funds seeing $2.69 billion in withdrawals, ending an 11-week streak of net inflows.
Train wreck.
