Global equity fund inflows jump to five-week high

Global equity funds saw a surge in inflows in the week through November 5 as investors, optimistic about rising artificial intelligence-linked corporate deals, favoured higher allocations during a market correction, reports Reuters.

Investors acquired a net $22.37 billion worth of global equity funds in their largest weekly purchase since October 1, data from LSEG Lipper showed.

In a pullback from the record high of last week, the MSCI World Index has lost about 1.6% so far in the latest week.

"While political uncertainty and shifting investor sentiment could inject further volatility into the market, we continue to believe that the fundamentals supporting the rally remain intact," said Mark Haefele, Chief Investment Officer at UBS Global Wealth Management in a report on Thursday.

"We maintain the view that the equity bull market has further to go and believe under-allocated investors should add exposure to transformative trends including AI," UBS' Haefele said.

US equity funds received $12.6 billion, the largest weekly inflow since October 1. Investors also added Asian and European funds worth $5.95 billion and $2.41 billion, respectively.