Equity fund inflows rise as war risks recede, upbeat earnings boost mood

Global equity funds recorded their fourth consecutive week of inflows in the week ended April 15, as strong corporate earnings and growing optimism that the Iran conflict could be resolved sooner than expected boosted investor risk appetite.

Investors poured a net $31.26 billion into global equity funds, marking the largest weekly purchase since March 25, according to LSEG Lipper data.

Sentiment was also supported by commodity price movements, with benchmark Brent crude futures (LCOc1) holding broadly below $100 per barrel during the week. This helped ease inflation concerns. Market participants also watched for a potential U.S.-Iran meeting over the weekend, which some investors believe could lead to a near-term de-escalation of tensions in the Middle East.

U.S. leads equity inflows

U.S. equity funds attracted $21.25 billion in net inflows, extending their streak to a fourth straight week of gains. European funds also saw strong demand, drawing $9.38 billion, while Asian equity funds recorded net outflows of $2.06 billion.

Sector-focused funds received $6.74 billion in net inflows, following a $4.86 billion gain the previous week. Technology, industrials, and metals and mining were the top-performing sectors, attracting $5.46 billion, $1.37 billion, and $633 million respectively.

Bond flows moderate, money markets see sharp outflows

Global bond funds recorded net inflows of $7.59 billion, slowing from about $14.5 billion in the prior week. Short-term bond funds saw outflows of $7.08 billion, reversing the previous week’s $7.5 billion inflow.

However, investor demand remained steady for certain segments, with high-yield, euro-denominated, and government bond funds attracting $3.64 billion, $1.15 billion, and $827 million, respectively.

Money market funds experienced a significant reversal, posting net outflows of $173.24 billion—the largest weekly withdrawal since at least September 2018.

Precious metals and emerging markets gain traction

Commodity funds linked to gold and other precious metals continued to attract interest for a third straight week, recording inflows of about $822 million.

Emerging markets also saw a second consecutive week of inflows, with investors allocating $3.63 billion to equity funds and $2.11 billion to bond funds.

The data covered flows across 28,807 funds.

Related data sources:

Fund flows: Global equities, bonds and money markets

Fund flows: Global equity sectors

Weekly flows into global bond funds

Fund flows: EM equities and bonds -Reporting by Gaurav Dogra. Editing by Jane Merriman/Reuters