In the week to 3 December, global equity funds saw a strong $7.93 billion in net inflows, reversing $6.41 billion of outflows the previous week, as markets price in an 89.6% probability of a 25 bps Fed rate cut this Wednesday.
🔹 Regional flows
- Europe: +$6.62B
- Asia: +$2.69B
- U.S.: –$3.52B (2nd week of outflows)
🔹 Sector & asset allocation trends
- Sector equity funds: +$1.41B, led by Industrials (+$495M) and Financials (+$336M).
- Global bond funds: +$8.61B (slightly above last week’s +$7.38B).
- Money market funds: huge rotation into cash with +$110.4B in inflows.
- Gold & precious metals funds: +$1.93B, highest in six weeks.
🔹 Emerging markets
- EM equity funds: +$3.11B (sixth consecutive week of net buying).
- EM bond funds: +$682M in inflows.
Investors are clearly re-risking selectively: adding to global and EM equities, rotating into cyclicals and financials, but still parking sizeable capital in cash and gold as macro uncertainty and policy risk remain front of mind.