What fund flows reveal about the next global market bets: EPFR’s Cameron Brandt

Despite resilient equity markets, especially in the US, global investors are not buying the rally with conviction. Cameron Brandt, Director of Research at EPFR Global, said, “Investors are certainly happy that this is the case, but they don’t have great faith in it.” The lack of fresh buying in the US and Chinese equities reflects deeper caution beneath surface-level optimism.Instead of chasing equity highs, investors are turning to safer yields. “They are loading up on higher funds that offer exposure to higher-yielding debt,” Brandt stated, suggesting that market participants expect interest rates to decline as growth slows eventually. The prevailing belief is that “any landing will be soft,” but that a return to higher growth may take time.

Even recent tariff announcements and geopolitical risks have failed to dent this mindset. “Markets get moved for four or five days, even two weeks, but shrug it right off,” he said. Investors are reacting less to headlines and more to macro positioning.

India, meanwhile, continues to benefit from steady inflows of investment. “Dedicated India funds have seen steady inflows,” Brandt stated, even if they are below the peaks of 2023. The broader trend is also encouraging. “We’re starting to see a significant pickup in flows to the global emerging markets funds, which still have a very healthy allocation to India.”Also Read: Fed unlikely to cut rates before December, says ING’s James Knightley

The de-dollarisation theme, though losing steam, has left its mark. “There’s certainly been a modest but appreciable rotation towards the stronger emerging markets—India, Korea, and Brazil,” he added. In contrast, China’s stimulus measures haven’t reversed its capital outflows. “Monetary easing has had no real effect,” he said.

Also Read: Peter McGuire sees strong second half for gold, metals, and other commodities

For the entire interview, watch the accompanying video

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