Equity fund flows down, but not out, as Covid-19 hits global markets

Another volatile week for global asset markets saw investors gravitate to funds offering exposure to gold, technology, diversified developed markets equity, dollar-denominated liquidity and European stocks during the fourth week of March. With risk appetite still at a low ebb, especially among fixed income investors, Bank Loan Funds extended their longest run of outflows since mid-3Q24, High Yield Bond Funds posted their second outflow over the past three and there was a strong reaction to the latest bout of political unrest in Turkey with EPFR-tracked Turkey Bond and Money Market Funds both setting new outflow records.

The toll on predictability taken by the idiosyncratic policymaking style of the new US administration hit fund flows during the second week of March. EPFR-tracked Equity Funds recorded their third, and biggest, outflow year-to-date and flows bypassed most of the fund groups associated with higher risk-reward ratios.

The toll on predictability taken by the idiosyncratic policymaking style of the new US administration hit fund flows during the second week of March. EPFR-tracked Equity Funds recorded their third, and biggest, outflow year-to-date and flows bypassed most of the fund groups associated with higher risk-reward ratios.