May 29 (Reuters) - Global investors returned to equity funds in the week to May 27 after a week of outflows, as a rally in AI-linked stocks revived demand, though caution over U.S.-Iran peace negotiations kept buying in check.
Investors bought a net $457.57 million in global equity funds, compared with a net outflow of $6.56 billion the previous week, LSEG Lipper data showed. MSCI’s World Index hit a record 1,129.06 on Friday.
Technology stocks have been particularly in favor since last week after Nvidia highlighted robust demand for its flagship AI chips. U.S. equity funds attracted a net $1.97 billion, while European funds also gained a net $678 million. Asian funds, however, recorded net outflows of $3.92 billion.
Sector funds attracted a net $5.14 billion overall, with technology and financials drawing a net $4.98 billion and $1.05 billion respectively. Global bond funds extended their winning streak to an eighth week, pulling in a net $18.15 billion.
Short-term bond funds, euro-denominated bond funds and corporate bond funds led demand, attracting a net $3.67 billion, $3.16 billion and $1.4 billion respectively. Money market funds saw net outflows of $4.46 billion, reversing net inflows of $18.12 billion the week before. Precious metals funds, including gold, recorded a net $584 million in outflows.
In emerging markets, equity funds shed a net $4.45 billion for a fifth straight week of outflows, while bond funds attracted a net $1.08 billion.
