Before the Wave

Flows into mutual funds and related investment products were positive across both equities and fixed income in the week ending November 4. Global equity funds saw net inflows of $89bn versus $56bn the previous week. DM saw continued strength in net inflows driven by US and Japan funds, while EM also saw meaningful net inflows driven by continued domestic inflows to Mainland China funds. At the sector level, technology funds once again saw the largest net inflows despite recent AI-driven equity volatility, though these data do not capture the extent of the moves in the latter half of the week following the US midterm elections; telecom funds saw the largest net outflows. Flows into global fixed income funds remained well-supported across fund type, with long-duration, short-duration and inflation-protected bond funds seeing inflows. In EM, hard-currency bond funds saw continued net outflows while local-currency bond funds saw net inflows. Money market fund assets increased by $140bn. Cr