The net asset values (NAV) of Egypt’s domestic investment funds saw a significant increase in the first quarter of 2026, rising by 30 percent quarter-on-quarter to reach LE410.6 billion, according to a recent report by the Financial Regulatory Authority (FRA). This marks a notable jump from the LE316 billion recorded at the end of the previous year.

During the same period, the total number of investment funds in Egypt grew by 15, reaching 187 funds. The volume of fund certificates also expanded substantially, climbing from 20.3 billion to 31.4 billion, highlighting increased investor activity and market growth.

Among the various categories of funds, precious metal funds displayed the most remarkable performance. Their NAV doubled from LE5.1 billion to over LE10 billion, generating a quarterly return of 20.4 percent. Equity funds held steady with a NAV of LE56.4 billion, while index funds and private equity funds posted moderate quarterly returns of 7.5 percent and 7.2 percent, respectively. Money market funds remained the dominant segment, representing 67.3 percent of the total assets, or LE276.5 billion.

Meanwhile, on the global economic front, Mohamed A. El-Erian highlighted ongoing risks stemming from the situation in the Strait of Hormuz. In a recent commentary, El-Erian noted that the twin blockades in the critical shipping route could persist within a four-to-eight-week timeframe. He warned that this disruption has the potential to cause physical shortages, not only in energy supplies but also across other sectors affecting Africa and Asia. He also pointed out rising fuel prices in the United States, with regular gasoline exceeding $4.50 per gallon and diesel reaching record highs, exacerbating the disparity between capital markets' performance and consumer confidence, which recently hit historic lows.

Despite macroeconomic uncertainties, equity markets exhibited resilience last week. The S&P 500 gained 0.8 percent, achieving its sixth consecutive weekly increase and closing at a record high of 7,398.93. The Nasdaq outperformed with a 1.7 percent rise, reaching a new peak of 26,247.08, while the Dow Jones Industrial Average remained mostly unchanged.

In fixed income markets, the 10-year U.S. Treasury yield settled at 4.38 percent, slightly down from earlier highs exceeding 4.4 percent. The 2-year yield finished at 3.9 percent, as investors continued to assess the trajectory of interest rates amid evolving economic data.

Globally, gold exchange-traded funds (ETFs) attracted renewed investor interest in April after significant outflows in March. Data from the World Gold Council (WGC) revealed inflows of $6.6 billion into physically backed gold ETFs during the month, lifting total assets under management to $615 billion — a one percent increase month-on-month. Collective gold holdings rose to 4,137 tonnes, nearing the all-time record set in late February.

European funds accounted for a substantial portion of the inflows, with $3.7 billion entering the market in April. This reversed their year-to-date net outflows, bringing the total to $3.7 billion positive for the year so far. The United Kingdom, Switzerland, and Germany were key contributors to this renewed investor appetite for gold.