Global equity and bond funds continued to see net inflows, with Japan bond flows in focus

Overview

This is a weekly Goldman Sachs report on global fund flows and FX flows for the week ending July 22, 2026, with a focus on Japan-related flows. Based on data from EPFR, Haver Analytics, and Goldman Sachs Global Investment Research, the report covers global equity funds, fixed income funds, money market funds, and cross-border FX flows measured by fund domicile.

Core views

The core conclusion is that flows into global risk assets remain broadly positive, with both equity and fixed income funds seeing net inflows; however, equity flows show clear divergence, with widespread outflows across developed markets except Japan, and U.S. funds as the main drag, while emerging market funds in Mainland China, Korea, and Taiwan saw strong net inflows. In fixed income, government bonds, short-duration bonds, and inflation-protected bonds maintained inflows, while emerging market hard currency and local currency bond funds also recorded net inflows. In FX, cross-border flows were positive overall, with the strongest demand for USD and GBP; recent increases in domestic inflows into Japanese bond funds may support the yen if more pronounced Japanese repatriation emerges in the future.

Analysis framework

The report combines weekly and four-week cumulative flow data, breaking down fund flows by asset class, region, country, sector, bond type, and currency, while also examining absolute amounts, percentage of AUM, and four-week cumulative Z-scores to assess the strength and abnormality of inflows or outflows.

Methodology notes

• Flow monitoringEPFR fund flow statistics

  Track net subscriptions and redemptions by fund category, region, and asset class

  The report uses data such as EPFR to measure equity, fixed income, money market, and FX-related fund flows, with a focus on comparing the current week, prior weeks, and four-week cumulative data.

• Relative strength assessmentPercentage of AUM and Z-score

  Measure flow strength using flows as a percentage of AUM and four-week cumulative Z-scores

  Because the amount of fund inflows is affected by fund size, the report also provides %AUM and Z-scores to help identify whether flows deviate significantly from recent or historical norms.

• FX flow methodologyCross-border FX flows

  Estimate currency demand using cross-border equity and fixed income fund flows

  FX flows are measured based on the domicile of the underlying funds, excluding hard-currency emerging market bond funds and FX-hedged products, to better reflect currency demand driven by cross-border allocation.

Asset mapping & comparison

Structured mapping from thesis to named assets (strengths, weaknesses, peers, risks).

• Global equity funds

  Net inflows overall, but momentum slowed versus the previous week

  Strengths

  Still recorded net inflows of $30.425bn during the week, with a four-week total of $128.677bn.

  Weaknesses

  Developed markets broadly saw outflows except Japan, with U.S. funds a notable drag.

  Comparison

  Emerging market equity inflows were stronger than developed market equity inflows; the technology sector was significantly stronger than sectors such as industrials.

  Risks

  If U.S. fund outflows continue or technology inflows cool, the breadth of equity fund support may weaken.

• Global fixed income funds

  Solid inflows across multiple bond categories

  Strengths

  Weekly net inflow was $15.136bn, with a four-week total of $95.626bn; short-duration and inflation-protected bonds continued to attract inflows.

  Weaknesses

  Some subsectors such as high yield and bank loans saw smaller inflows and remain sensitive to rates and credit conditions.

  Comparison

  Compared with equity funds, fixed income inflows were more balanced; compared with money market funds, bond funds were still absorbing capital.

  Risks

  Changes in the rate path, inflation expectations, or credit spreads could alter the direction of bond fund subscriptions and redemptions.

• Money market funds

  Declining assets

  Strengths

  Still an important liquidity asset class.

  Weaknesses

  Declined by $33.856bn during the week, with a four-week cumulative decline of $58.933bn.

  Comparison

  In contrast to net inflows into equity and fixed income funds, this suggests some capital may be shifting from cash-like assets into risk or yield assets.

  Risks

  If market risk appetite declines, money market fund flows could reverse again.

• Japan-related assets and JPY

  Japanese bond fund inflows and potential repatriation are seen as supportive for the yen

  Strengths

  Japan equity funds recorded net inflows of $1.536bn during the week; the report notes that domestic inflows into Japanese bond funds have recently increased.

  Weaknesses

  JPY FX flows were -$9mn for the week, not indicating strong net demand in the near term.

  Comparison

  Japan performed relatively better than U.S. and Western European equity funds within developed markets; however, JPY demand was weaker than USD and GBP.

  Risks

  Whether Japanese repatriation continues, how investment behavior changes following comments from Ministry of Finance officials, and the interest-rate differential environment will affect the degree of yen support.

• USD

  Strongest net demand in cross-border FX flows

  Strengths

  USD recorded net inflows of $8.395bn during the week and $34.441bn over four weeks.

  Weaknesses

  Demand strength may still be affected by U.S. asset outflows, rate expectations, and dollar valuation.

  Comparison

  USD net demand was significantly higher than that of other G10 currencies.

  Risks

  If demand for U.S. asset allocation weakens or policy expectations change, dollar inflows may slow.

• Mainland China, Korea, and Taiwan equity funds

  Main sources of emerging market equity inflows

  Strengths

  Mainland China saw net inflows of $21.330bn, Taiwan $4.790bn, and Korea $1.490bn during the week.

  Weaknesses

  Some inflows are concentrated in a small number of markets, which may increase flow volatility.

  Comparison

  Significantly stronger than developed market equity funds such as those in the U.S. and Western Europe.

  Risks

  If the Asian technology supply chain, policy expectations, or FX environment reverse, related inflows may retreat.

Key data

• Weekly net inflow into global equity funds$30.425bnFour-week cumulative net inflow was $128.677bn; the previous week was $55.759bn.
• Weekly net inflow into global fixed income funds$15.136bnFour-week cumulative net inflow was $95.626bn, with inflows across multiple bond categories.
• Weekly change in money market funds-$33.856bnThe four-week cumulative total was -$58.933bn, showing a decline in money market fund assets.
• Weekly net inflow in cross-border FX flows$17.066bnFour-week cumulative net inflow was $71.945bn, indicating positive cross-border FX flows overall.
• Weekly flow in U.S. equity funds-$7.227bnU.S. funds were the main source of net outflows from developed market equities.
• Weekly flow in Japan equity funds$1.536bnJapan remained in net inflow among developed markets.
• Weekly flow in Mainland China equity funds$21.330bnOne of the largest contributors to emerging market equity inflows, with a four-week total of $40.823bn.
• Weekly flow in Korea equity funds$1.490bnFour-week total was $16.337bn, with a four-week cumulative Z-score of 3.90.
• Weekly flow in Taiwan equity funds$4.790bnFour-week total was $12.655bn, with a four-week cumulative Z-score of 3.75.
• Four-week flow in technology sector funds$65.776bnTechnology funds continued to receive the largest net inflows, with a four-week cumulative Z-score of 4.57.
• Weekly flow in industrial sector funds-$1.385bnA relatively notable net outflow at the sector level during the week.
• Weekly flow in USD FX flows$8.395bnUSD saw the strongest net demand among G10 currencies.
• Weekly flow in GBP FX flows$1.329bnGBP also showed relatively strong net demand.
• Weekly flow in JPY FX flows-$9mnJPY was roughly flat for the week, but the four-week total was still $4.102bn.

Impact & implications

Fund flow data suggest that global allocation demand has not yet clearly reversed, with both bond and equity funds still supported by inflows; however, regional divergence within equities is strong, with outflows from the U.S. and Europe contrasting with inflows into Asian markets such as Mainland China, Korea, and Taiwan. For Japan, increased domestic inflows into bond funds and potential repatriation could provide marginal support for the yen, though the report also notes that these data mainly reflect retail flows and should not be directly equated with broad institutional behavior.

Risks

• EPFR data mainly cover mutual funds and related investment products and do not fully represent all institutional capital behavior.
• The reported inflows into Japanese bond funds mainly reflect retail flows, so caution is needed when extrapolating them to a broader repatriation trend.
• Global equity inflows have regional and sector concentration; if inflows into technology or Asian markets slow, overall equity fund support could weaken.
• Changes in currencies, rates, inflation, and credit spreads could quickly alter the direction of fixed income and FX flows.
• Disclosures note that the research is based on public information and may be incomplete, and that views and data are as of the report date and may change.

What to watch

• Whether domestic inflows into Japanese bond funds continue to expand and whether they translate into broader repatriation.
• Whether subsequent JPY FX flows shift from roughly flat to sustained net inflows.
• Whether outflows from U.S. and Western European equity funds continue and drag on overall developed market equity allocation.
• Whether strong inflows into Mainland China, Korea, and Taiwan equity funds can be sustained.
• Whether high-intensity inflows into technology funds persist or spread to other sectors.
• Whether outflows from money market funds indicate a migration of cash into risk assets or bond assets.
• Whether short-duration bond funds and inflation-protected bond funds continue to receive stable inflows.