Deutsche Bank’s equity positioning gauge showed a decline in aggregate investor exposure last week, though it remains modestly overweight relative to neutral levels. The decrease contrasts with sustained inflows into global equity funds, which accelerated to $40.1 billion, according to the bank’s latest assessment.
Discretionary investors reduced their exposure to a slight underweight position, while systematic strategies maintained their overweight stance without change. Volatility control funds kept equity allocations near elevated levels, and Commodity Trading Advisors increased their positioning, which remains above historical averages.
Fund flows data revealed strong demand for equities globally, with U.S. equity funds accounting for the majority of the increase at $28.9 billion. Broad global funds attracted $11.7 billion in inflows, while technology funds returned to positive territory with $2.3 billion after two consecutive weeks of outflows. Bond funds also saw robust inflows of $21.4 billion, indicating diversified investor appetite across asset classes.
The bank’s strategist Parag Thatte noted that current investor positioning remains well below levels implied by current earnings growth, suggesting room for further expansion in exposure if market conditions remain supportive.
