March volatility highlights how EOSB funds respond to market movements

March 2026 was a good example of how outcomes from funded EOSB schemes are linked to investment markets.

Following a period of market volatility, both DEWS and GO SAVER recorded declines across many investment options, particularly those with higher exposure to equity markets. Not long after, the decline was followed by a sharp rebound in the first half of April as markets recovered following the ceasefire announcement.

While such movements can appear significant over short periods, they are a normal feature of market-linked savings schemes and highlight the importance of maintaining a long-term perspective.

What happened in March 2026?

The most significant declines were recorded in equity-focused investment strategies, particularly funds with concentrated regional or sector exposure.

Fixed income funds also came under pressure during the month, although declines were generally more moderate than those experienced by equity funds.

As a result, diversified funds that typically combine multiple asset classes also weakened during the period.

Money market funds were the exception. Supported by the prevailing high-interest-rate environment, they remained relatively stable and continued to provide capital preservation characteristics.

What it tells us?

Risk and return remain closely linked. Funds with higher exposure to growth assets typically experience greater short-term volatility. While this can result in larger declines during periods of market stress, it can also create stronger recovery potential when markets rebound. The recovery seen during April illustrates this relationship clearly.

EOSB savings schemes are designed for long-term accumulation. Unlike a lump-sum investment made at a single point in time, EOSB contributions are made regularly throughout employment. This means employees continue contributing during both rising and falling markets, helping smooth the impact of short-term volatility over time. For many employees, outcomes will be shaped by years of contributions rather than the performance of any single month or quarter.

Long-term performance matters more than monthly movements. Short-term market fluctuations often attract attention, particularly during periods of heightened uncertainty. However, EOSB savings schemes are generally better assessed over longer time horizons that more closely reflect employee tenure, often five (5) years or longer. Looking only at monthly performance can provide an incomplete picture of how a savings strategy is performing.

Takeaway

As funded workplace savings schemes continue to expand across the GCC, understanding how investment markets influence employee outcomes will become increasingly important for both employers and employees.

This article is an excerpt from the Q1 2026 GCC EOSB Monitor. Download the full publication.