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Search date: 15-03-2025 Return to current date: Click here

Global equity funds see declining demand on trade tensions

March 15, 2025 00:00:00


Global equity funds saw weaker demand in the week through March 12, amid a global stock sell-off driven by concerns over US tariffs and its escalating trade wars, reports Reuters.

Investors put just $3.21 billion into global equity funds for the week, sharply down from an average weekly inflow of $11.6 billion in February, LSEG Lipper data shows.

European equity funds faced the heaviest selling during the week, as the EU's retaliatory tariffs on US goods heightened trade tensions, leading to investors withdrawing a net $5.29 billion - the first net outflow in eight weeks.

However, US and Asian equity funds received modest net inflows.

Sectoral equity funds saw their second consecutive weekly net outflow to the tune of $4.5 billion, with investors divesting a record $3.67 billion worth of technology funds.

Heightened investor caution spurred inflows into safer assets, with bond funds attracting $10.37 billion, their 11th consecutive week of net inflows.

Short-term bond funds drew a net $7.78 billion, the biggest weekly inflow in two months. Investors also snapped up government bond funds worth $2.5 billion and corporate bond funds worth $1.1 billion, on a net basis.

Gold and precious metals commodity funds were popular for a fifth successive week as they drew about $794 million worth of net investments during the week. Meanwhile, investors shed a net $26 million worth of energy segment funds.

Data encompassing 29,594 emerging market funds revealed $1.05 billion worth of net sales from equity funds after three weeks of net buying. Bond funds, however, secured $329 million in a 10th straight week of net additions.


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