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Global equity fund inflows ease on worries over Fed independence
Published by Global Banking & Finance Review®
Posted on August 29, 2025
2 min readLast updated: January 22, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on August 29, 2025
2 min readLast updated: January 22, 2026
Global equity fund inflows declined amid concerns over Federal Reserve independence, with significant impacts on European and emerging market funds.
(Reuters) -Global equity funds witnessed a dip in demand in the week through August 27 on concerns around the Federal Reserve's independence as President Donald Trump attempted to fire a Federal Reserve governor.
According to LSEG Lipper data, global equity funds received just $2.96 billion in inflows during the week, the smallest amount since a $7.64 billion weekly outflow in the week to August 6.
European equity funds saw a net $876 million weekly purchase when compared with approximately $9.88 billion inflows in the prior week. Investors added U.S. and Asian equity funds of a net $571 million and $649 million, respectively.
Meanwhile, equity financial sector funds saw a surge in demand with a net $1.52 billion - the biggest amount in eight months- flowing in during the week.
Gold and precious metals, and technology sector funds also saw significant inflows to the tune of $556 million and $553 million, respectively.
Global bond funds were, meanwhile, popular for a 19th straight week as these funds saw a net $14.42 billion in inflows during the week.
The short-term bond funds segment attracted a noticeable $2.59 billion in a ninth straight week of net purchases.
Euro-denominated bond funds and corporate bond funds also saw a massive $2.37 billion and $1.77 billion net weekly inflows.
Money market funds, meanwhile, saw a net $17.57 billion weekly outflow as investors ended three weeks' buying trend.
In parallel, gold and precious metals commodity funds attracted a net of $715 million as demand renewed after a net $293 million weekly outflow.
In emerging markets, investors ditched $310 million worth of equity funds, logging a third weekly outflow in four weeks. They, however, snapped up $985 million worth of bond funds, data for a combined 29,693 funds showed.
(Reporting by Gaurav Dogra in Bengaluru; Editing by Shreya Biswas)
A global equity fund is an investment vehicle that pools money from multiple investors to invest primarily in stocks of companies around the world, aiming for capital appreciation.
The Federal Reserve, often referred to as the Fed, is the central banking system of the United States, responsible for implementing monetary policy and regulating banks.
Emerging markets are countries with developing economies that are in the process of industrialization and growth, often characterized by higher risk and potential for higher returns.
Monetary policy refers to the actions taken by a central bank to control the money supply and interest rates to achieve macroeconomic objectives such as controlling inflation and stabilizing currency.
Equity funds are mutual funds or exchange-traded funds that invest primarily in stocks, aiming to provide investors with capital growth and dividends.
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