Summary: Global equity funds experienced heavy redemptions in the seven days to March 11, with investors reacting to disruptions in oil supplies linked to the ongoing U.S.-Israel conflict with Iran. The week saw widened flows into money market and short-duration bond funds even as equities and some bond segments registered net outflows.
Global equity funds recorded net outflows of $7.05 billion for the week ending March 11, the largest weekly withdrawal since the week through December 17, 2025 when outflows totaled $46.68 billion, according to LSEG Lipper data. Market anxiety was driven by disruptions to oil supplies connected to the U.S.-Israel conflict with Iran, which stoked concerns about inflationary pressures and slower global growth.
Brent crude traded above $100 a barrel on Friday as traders assessed what some participants described as the largest oil supply disruption in history. Shipping activity in the Gulf and through the narrow Strait of Hormuz was reported to be at a near-standstill, amplifying market unease.
Measured market uncertainty was also reflected in the CBOE Volatility Index, often referred to as Wall Street's "fear gauge" but more accurately an indicator of market uncertainty, which reached 28.15 earlier this month - its highest reading since November.
Regional and sector flows
U.S. equity funds bore the brunt of the selling, with approximately $7.77 billion of outflows recorded for the week following net weekly sales of $21.91 billion in the prior period. European funds saw roughly $7.71 billion redeemed, while investors put fresh money into Asia-focused equity funds, investing $6.15 billion.
On the sector front, equity sectoral funds experienced net sales of $2.71 billion overall. Investors divested $2.31 billion from financial sector funds and $1.31 billion from healthcare sector funds. Industrial sector funds bucked the trend, attracting inflows of $1.31 billion.
"The recent decline in North Asian equity markets appears disproportionate relative to underlying fundamentals," said Ray Sharma-Ong, deputy global head of multi-asset Solutions, at Aberdeen Investments. "When geopolitical risks stabilise, positioning and sentiment could reverse quickly, potentially leading to a sharp recovery in the region."
Fixed income, money markets and commodities
Weekly net investments into global bond funds cooled to a 10-week low of $5.72 billion. The high yield segment recorded net sales of $3.17 billion, marking the largest weekly outflow for that sector since mid-April 2025. In contrast, short-term bond funds drew $5.75 billion, a four-week high, as investors sought shorter-duration exposure.
Money market funds continued to attract cash, taking in $6.93 billion and registering inflows for a seventh straight week as investors sought safer parking places for capital amid market turbulence.
Investors also reduced exposure to gold and precious metals commodity funds, with net sales of $2.84 billion. Those funds have recorded net weekly sales in three of the past four weeks. Emerging market equity funds faced selling pressure as well, with roughly $2.69 billion redeemed after an 11-week run of net purchases.
Across the broader fund universe covered by the data - a combined 28,809 funds - bond funds registered net weekly outflows of $656 million.
Outlook
The flows for the week to March 11 highlight investor preference for shorter-duration and cash-like instruments amid elevated geopolitical and oil-supply uncertainty. Movements were uneven across regions and sectors, with industrial equities attracting some interest even as financials, healthcare and high-yield debt saw redemptions.