Bond and Equity Funds Drew Over $34 Billion in Late September, Citi Reports

Global bond and equity funds attracted substantial capital in the last week of September, drawing in a combined $34.6 billion from investors, according to new data from Citi. The inflows signal a notable shift in sentiment, although regional trends varied significantly.

Inflows Dominate, but U.S. Lags

Bond funds led the way, securing $18.8 billion in new assets during the week of September 30, 2026, the report stated. Equity funds also saw strong demand, pulling in $15.8 billion over the same period.

Geographically, the flows showed a mixed picture:

• Global funds recorded net inflows of $9.6 billion.
• European funds added a more modest $1.3 billion.
• U.S. funds experienced a small net outflow, as inflows into exchange-traded funds (ETFs) were offset by redemptions from non-ETF products.

Divergence in Emerging Markets

Ad

Emerging market (EM) funds registered $3.2 billion in total inflows, but this figure was driven almost entirely by strong interest in China. ETFs focused on China attracted $4.1 billion, while Taiwan-focused ETFs gained $0.7 billion. In contrast, broader global emerging market funds continued to experience net outflows.

Meanwhile, several other Asian markets faced significant foreign selling pressure last week. South Korea saw net foreign outflows of $6.2 billion, followed by Taiwan with $2.0 billion and India with $1.7 billion in foreign institutional investor outflows. Japan recorded its third consecutive week of net outflows.

Money Market Funds See Major Redemptions

While bond and equity funds gained, European money market funds faced a massive wave of redemptions totaling $38.5 billion. According to Citi, this substantial outflow has reduced the 52-week net flow for these funds to nearly zero.

Across the wider Europe, Middle East, and Africa (EMEA) region, money market funds have seen combined outflows of $9.4 billion over the past three weeks. This has effectively erased all gains accumulated since late March, marking a sharp reversal for the category.