Global Navigator | Investors turn back the page during the second week of October

Flows into EPFR-tracked funds had a late-July flavor during the latest reporting period, with several groups posting their largest inflows and outflows since the week ending July 29. Then, as now, escalating tensions in the Middle East and high energy prices were not enough to dent expectations that the US Federal Reserve would keep rates on hold at their next meeting or undermine investors’ faith in the artificial intelligence story. As was the case then, and remains true during the latest week ending October 14, flows into Technology Sector and US Equity Funds rebounded, Alternative Funds saw inflow streaks end and flows into Bond Funds were relatively subdued.

There were differences to the backdrop, with a hotter-than-expected CPI reading rekindling expectations of at least one more US rate hike before year-end and the impending round of US technology company earnings facing tougher scrutiny. Electoral politics ahead of contests in Brazil, the US, Spain and – next year – France also had a bigger impact on the latest flows.

Alternative Funds saw their first outflow since late July and just their second since the start of the third quarter with nearly $1.3 billion redeemed, snapping a 10-week run of inflows that totaled almost $63.2 billion. While Physical Gold Funds eked out a modest inflow overall and extended their inflow streak to 15 weeks, the Alternative Fund with the biggest outflows this week was one tied to LBMA Gold Price index.

Meanwhile, with investors possibly anticipating a rebound after the latest Nasdaq sell-off or looking to take profits on bearish positions, US Bear Funds drove the overall headline number with their second outflow of the past seven weeks as two funds tracking the Nasdaq-100 posted a combined outflow of $550 million.

On the equity side, meanwhile, US Leveraged Funds attracted their biggest inflow since early 2Q25 with over $2.7 billion directed into a single fund tracking the NYSE Semiconductor index and $1.2 billion flowing into three funds with 2x or 3x leverage exposure to the Nasdaq-100. Flows into Korea Leveraged Funds reached a 10-week high after much of the past two months in negative territory, with seven of the top 10 funds with the biggest inflows offering exposure to a single-stock, SK Hynix. Investors bought into the dip, betting that prices would rise after SK Hynix fell 22.7% in the past week.

Looking at the other major asset classes, Balanced Funds extended their run of inflows to 12 weeks as the headline number lifted to $1.23 billion, flows into Bond Funds were nearly a third of the size of last week’s headline number, but strong nonetheless at $11.83 billion, while Equity Funds took in $64.5 billion during the week to October 14, five times the size of last week’s inflow. Investors dialed back on Money Market Funds as redemptions reached $53.12 billion,reversing 32% of the sizable inflows last week and marking their third outflow of the past five weeks.