Global equity funds attracted net new money for a third consecutive week in the period ending June 10, with investors using a recent selloff to increase exposure to technology names amid expectations that the AI-led advance will persist. LSEG Lipper data show global equity funds drew a net $3.32 billion for the week, down from $21.12 billion in the prior seven-day period.
Mark Haefele, chief investment officer at UBS Global Wealth Management, said in a note earlier in the week that investors who have been underweight the AI supply chain may find it sensible to make selective additions when prices soften. "Underlying measures of AI demand remain firmer," he added.
The MSCI World Index retreated as much as 4.8% from last week’s record high of 1,138.3, though it subsequently recouped roughly 2.3% amid renewed hopes of a peace deal between Iran and the U.S. Regional flows were mixed. European funds collected $6.74 billion of net inflows and Asian funds took in $6.37 billion, while U.S. funds recorded net redemptions of $12.57 billion - the first weekly net sales by U.S. funds in three weeks.
Sector-level activity showed a continued preference for technology exposure: tech funds attracted $7.05 billion, marking a tenth straight week of net inflows into the sector. Financials and industrials also drew fresh money, with $624 million and $545 million of weekly inflows, respectively.
Fixed income vehicles extended a lengthy buying streak as global bond funds logged a net $18.27 billion of inflows for the week, the tenth straight week of positive flows. Within that total, investors funneled $6.7 billion into short-term bond funds - the largest weekly short-term bond inflow in three weeks - alongside $3.21 billion into U.S. dollar medium-term bond funds and $2.26 billion into euro-denominated bond funds.
In contrast, money market funds reversed the prior week’s heavy inflows and saw $18.21 billion of net outflows after having taken in $154.64 billion in the previous week. Precious metal funds were also out of favor: investors withdrew a net $1.86 billion from gold and other precious metal funds, marking a fourth consecutive weekly outflow.
Emerging market strategies continued to feel pressure from withdraws. Investors sold a net $944 million of emerging market bond funds and a net $3.4 billion of emerging market equity funds, the seventh straight week of net outflows for emerging market-focused vehicles. The flow figures are based on data covering a combined 28,937 funds.
Overall, the latest week of activity reflected a bifurcated investor stance - a willingness to add risk to areas tied to AI-driven demand, notably technology, while simultaneously reallocating into bond strategies and stepping away from certain safe-haven and cash alternatives. Regional preferences varied, with Europe and Asia seeing inflows even as U.S.-listed funds experienced net redemptions.