Finance
Global Equity Funds See Biggest Inflows in 2-1/2 Months on Iran De-Escalation Hopes
Published by Global Banking & Finance Review®
Posted on March 27, 2026
2 min readLast updated: March 27, 2026
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Global equity funds recorded a weekly net inflow of $37.8 billion in the week to March 25, their largest since February 18, spurred by hopes of de‑escalation after Donald Trump delayed strikes on Iranian energy infrastructure.
Global Equity Funds Attract Largest Inflows in Over Two Months Amid Iran Hopes
Weekly Fund Flows and Market Reactions
Equity Fund Inflows Surge on Geopolitical Developments
March 27 (Reuters) - Global equity funds attracted their biggest weekly inflow in nearly 2-1/2 months in the week through March 25 after U.S. President Donald Trump delayed strikes on Iranian energy infrastructure, raising hopes of a temporary de-escalation and easing oil shock fears.
Investors acquired a net $37.77 billion of global equity funds in their largest weekly net purchase since February 18 after a two-week selling streak, LSEG Lipper data showed.
Regional Fund Flows
They bought a net $37.24 billion of U.S. equity funds as they halted a three-week selling trend. Asian funds also saw a net $5.23 billion weekly inflow, but European funds suffered outflows of $7.52 billion.
Market Volatility and Investor Sentiment
Global equities, however, tumbled around 1.6% on Thursday on Iran's denial of any talks with the U.S., deepening doubts about the chance of a quick ceasefire in the nearly one-month-long war in the Middle East.
Expert Insights
Mark Haefele, chief investment officer at UBS Global Wealth Management, said investors should be cautious about expecting a swift resumption of energy flows through the Strait of Hormuz, though he did not foresee significant or lasting economic damage in the base case.
"This means long-term investors with well-diversified portfolios should stay invested," UBS's Haefele said.
Bond and Commodity Fund Movements
Demand for debt-linked funds cooled to the lowest in nearly three months as investors poured just $2.53 billion into global bond funds.
Bond Fund Segment Trends
High-yield and euro-denominated bond fund segments saw significant outflows of $4.75 billion and $2.11 billion, respectively, but investors pumped a record $11.1 billion into short-term bond funds.
Money Market and Commodity Funds
Investors exited roughly $64.78 billion worth of money market funds as they ended an eight-week-long trend of net purchases.
Gold and precious metals commodity funds faced outflows for a fourth week, to the tune of $3.14 billion.
Emerging Market Fund Activity
Emerging market funds witnessed selling pressure for a third week as investors withdrew $2.78 billion from equity funds and $1.73 billion from bond funds, data for a combined 28,796 funds showed.
Reporting Credits
(Reporting by Gaurav Dogra; with additional reporting by Patturaja Murugaboopathy in Bengaluru; Editing by Andrew Heavens)
Key Takeaways
- •Broad-based global equity inflows resumed on hopes of easing Iran tensions following Trump’s strike delay
- •Investors heavily favored U.S. and Asian equities, while European equity funds saw outflows
- •Bond flows show a strong tilt toward short‑term funds; investors fled money‑market and emerging‑market assets amid uncertainty
Frequently Asked Questions about Global equity funds see biggest inflows in 2-1/2 months on Iran de-escalation hopes
1Why did global equity funds see large inflows recently?
Investors responded to hopes of Iran de-escalation and easing oil shock fears, leading to the biggest inflows in nearly 2.5 months.
2How much was invested in U.S. equity funds during the week?
Investors bought a net $37.24 billion of U.S. equity funds, ending a three-week selling trend.
3What was the trend in European and Asian fund flows?
Asian equity funds saw net inflows of $5.23 billion, while European funds faced outflows of $7.52 billion.
4How did money market and commodity funds perform?
Money market funds saw outflows of roughly $64.78 billion, and gold and precious metals funds faced $3.14 billion in outflows.
5What advice did UBS's Mark Haefele offer to investors?
He advised long-term investors with well-diversified portfolios to stay invested despite current volatility.