Global equity funds saw a strong rebound, attracting $22.4 billion in the week through November 5 — the largest inflow since early October, according to LSEG Lipper.
Despite a 1.6% dip in the MSCI World Index, investors took advantage of the pullback to increase exposure to AI-linked corporates and long-term equity opportunities.
“While political uncertainty could inject volatility, the fundamentals behind the rally remain intact,” said Mark Haefele, CIO at UBS Global Wealth Management.
“Under-allocated investors should add exposure to transformative trends like AI.”
🔹 Where the Money Went
- 🇺🇸 U.S. equity funds: +$12.6B (biggest since Oct 1)
- 🌏 Asian funds: +$5.95B
- 🇪🇺 European funds: +$2.41B
- 💻 Technology sector: +$4.29B — strongest inflow since 2022
- 🌍 Emerging markets: +$1.61B (2nd straight week of inflows)
Meanwhile, investors continued their 29-week streak of adding to bond funds (+$10.37B), with corporate and short-term bonds seeing the largest demand.
Money market funds also surged, drawing $147B, the highest inflow in 10 months, signaling cautious cash positioning alongside risk-on optimism.
🔹 The Takeaway
Global investors are buying the dip, rotating into AI-driven equities while maintaining liquidity buffers through bonds and cash.
The dual movement — risk allocation toward transformative growth and defensive positioning — underscores a measured optimism heading into year-end.
The AI narrative continues to shape global fund flows — not as a fad, but as the next structural growth cycle.