Global equity mutual funds and ETFs recorded substantial net inflows during the most recent week, with a clear tilt toward European and Asian markets as investors sought to reduce concentration in U.S. technology stocks. According to LSEG Lipper data, global equity funds logged $31.46 billion of net new money, a modest decline from the prior week’s $35.03 billion.
European equities led the move, attracting about $14 billion in net investments - the largest weekly intake since the week of April 30 - coinciding with the STOXX 600 reaching a record high. Asian equity funds were the second-largest recipients with $9.59 billion, while U.S. equity funds drew $5.58 billion in net flows.
Asset managers cited regional policy and structural developments as underpinning investor interest. "Gains in Asian and European markets point to opportunities arising from regional fiscal expansion and structural reforms," said Mark Haefele, chief investment officer at UBS Global Wealth Management. He added that, in an environment of elevated risk and uncertain outcomes, diversification across sectors and geographies is particularly valuable.
At the sector level, industrials and metals and mining funds topped net purchases, receiving $2.75 billion and $2.1 billion respectively. Technology-sector funds experienced outflows, with net redemptions of $2.03 billion.
Fixed income and cash instruments remained popular. Global bond funds saw net inflows for the fifth consecutive week, totaling about $18.71 billion. Within the bond complex, short-term bond funds, euro-denominated bond funds, and high-yield bond funds attracted notable buying interest, receiving $2.79 billion, $1.9 billion, and $1.46 billion respectively.
Money market funds registered a substantial weekly inflow of $90.75 billion, the largest weekly intake since the $162.52 billion added in the week to January 7. Commodity-focused investors also increased allocations to precious metals, with gold and precious metals funds drawing $3.08 billion - the biggest weekly net purchases in six weeks.
Emerging market equities continued to see enthusiastic demand, collecting $11.89 billion in net inflows for the seventh consecutive week. Emerging market bond funds, however, recorded a small net outflow of $259 million. The data covered a combined 28,709 funds.
Overall, the flows suggest a rotation of capital toward non-U.S. equity markets and into fixed income and cash-like instruments, as investors balance pursuit of opportunities with a preference for diversification amid heightened uncertainty.