Global investors continued to rotate portfolios in the week ended February 11, channeling fresh money into European and Asian equity funds while pulling back from U.S. equity funds focused on mega-cap names. LSEG Lipper data show global equity funds recorded net inflows totaling $25.54 billion for the week - the fifth consecutive weekly gain.
European equity funds took center stage, attracting $17.53 billion in net purchases. That figure represents the largest single-week inflow for European funds since at least 2022, according to the data. Asian equity funds also drew meaningful demand, with roughly $6.28 billion in net inflows over the same period.
By contrast, U.S. equity funds experienced net redemptions of $1.42 billion, marking the first week of net outflows in three weeks. Market participants trimmed exposure to U.S. mega-cap stocks, citing concerns about elevated valuations and the prospect of increased AI-related spending that could affect profit margins and capital allocation across certain firms.
The U.S. technology-heavy Nasdaq Composite index fell 2.03% on Thursday in the period, reflecting renewed investor unease about potential disruption from artificial intelligence technology across sectors such as software, legal services and wealth management.
Fixed-income funds continued to appeal to investors, with global bond funds drawing approximately $21.09 billion in net inflows for the week - the sixth straight week of positive flows. Within that category, short-term bond funds recorded $4.87 billion of inflows, the largest weekly intake for this segment since a $10.17 billion net purchase in mid-December.
Other pockets of the bond market also saw buying. Corporate bond funds attracted $2.63 billion, while euro-denominated bond funds gathered $2.06 billion in net inflows. Meanwhile, money market fund inflows moderated to a three-week low of $1.15 billion.
Commodities-focused funds, particularly those tracking gold and other precious metals, extended a long run of investor support. These funds registered their 13th weekly inflow in 14 weeks, taking in $1.25 billion for the latest week, though that amount was the smallest weekly inflow in five weeks.
Emerging market investors continued to add to equity positions, with emerging market equity funds receiving $8.52 billion in net inflows - the eighth consecutive week of inflows for the segment. Emerging market bond funds also saw positive flows, taking in $1.29 billion.
These figures reflect activity across a combined sample of 28,723 funds tracked by the data provider.