Global fund investors continued to increase exposure to Euro Area stocks in March, spurred by the hope that ECB QE will improve earnings prospects and economic growth more broadly. As investors shifted into Euro Area equities, they retreated from the U.S. market--the share of U.S. equities in portfolio allocations continued to decline. Conversely, the attractive yield pickup on U.S. bonds continues to lure global investors (notably from the Euro Area) to allocate more to U.S. corporate bonds (though exposure to U.S. Treasuries was reduced). While fund investors’ appetite for emerging market assets was subdued in March, portfolio weights for EM bond and equities continued to reflect signs of greater differentiation. Notably, India has seen the largest rise in equity allocations this year, driven primarily by robust fund flows, while the biggest drop in portfolio equity weightings in March was seen in China.