March 13 (Reuters) – Global equity funds recorded their biggest weekly outflows in the seven days from mid-December to March 11 as disruptions in oil supplies caused by the ongoing U.S.-Israel conflict with Iran raised concerns about inflation and global economic growth.
Global equity funds had outflows worth $7.05 billion for the week, the largest since the week to December 17, 2025, when outflows were worth $46.68 billion, according to LSEG Leper data.
Brent crude rose above $100 a barrel on Friday as global oil markets grappled with what traders called the biggest oil disruption in history, with shipping in the Gulf and the Strait of Hormuz at a near standstill.
The CBOE Volatility Index, often called Wall Street’s “fear gauge,” but more accurately an index of market uncertainty, hit 28.15 earlier this month, the highest level since November.
U.S. equity funds saw gains of nearly $7.77 billion last week after net weekly sales of $21.91 billion. Investors also closed European funds worth $7.71 billion but invested $6.15 billion in Asia.
Equity sector funds saw net sales of $2.71 billion, with investors losing $2.31 billion and $1.31 billion in financial and healthcare funds, respectively. However, industrial sector funds attracted inflows of $1.31 billion.
“The recent decline in North Asian equity markets appears asymmetric compared to fundamentals,” said Ray Sharma-Ong, vice president of multi-asset solutions at Aberdeen Investments.
“When geopolitical risks stabilize, the situation and sentiment can quickly rebound, potentially leading to a rapid recovery in the region.”
Weekly net investment in global bond funds hit a 10-week low of $5.72 billion.
The high-yield segment recorded net sales of $3.17 billion, the largest weekly inflow since mid-April 2025. Meanwhile, weekly inflows into short-term bond funds rose to a four-week high of $5.75 billion.
Money market funds attracted $6.93 billion, bringing in money for the seventh straight week, as investors scrambled for safety.
However, investors sought a net $2.84 billion in gold and precious metals commodity funds, which recorded net weekly sales for three of the past four weeks.
Emerging markets also came under selling pressure as investors pulled nearly $2.69 billion worth of equity funds after an 11-week net buying streak. Bond funds had net inflows of $656 million for the week, data from a combined 28,809 funds showed.
(Reporting by Gaurav Dogra; Additional reporting by Pathuraja Murugabopati in Bangalore; Editing by Diti Pujara)
