June 12 (Reuters) - Global equity funds drew inflows for a third straight week, as investors used a market selloff to add exposure to technology stocks on expectations the AI-driven rally will continue.
Investors bought a net $3.32 billion of global equity funds in the week through June 10, compared with $21.12 billion of net investments the prior week, according to LSEG Lipper data.
"For investors who may have under-allocated to the AI supply chain, we think select additions on weakness may make sense,"
Mark Haefele, chief investment officer at UBS Global Wealth Management, said in a note earlier this week. "Underlying measures of AI demand remain firmer."
The MSCI World Index fell as much as 4.8% from last week's record high of 1,138.3, but has since recovered roughly 2.3% on renewed hopes of a peace deal between Iran and the U.S.
European and Asian funds witnessed $6.74 billion and $6.37 billion of weekly net inflows, respectively. U.S. funds, however, recorded $12.57 billion of outflows, the first weekly net sales in three weeks.
Tech funds drew $7.05 billion in their tenth straight week of inflows. Financials and industrials attracted $624 million and $545 million, respectively.
Global bond funds saw a net $18.27 billion of weekly inflows, as investors extended their buying streak to 10 weeks.
Investors poured $6.7 billion into short-term bond funds, the biggest weekly inflow in three weeks, alongside $3.21 billion into dollar medium-term bond funds and $2.26 billion into euro bond funds.
Money market funds had $18.21 billion of net outflows, reversing course after drawing a hefty $154.64 billion in inflows the previous week.
Investors also shed a net $1.86 billion of gold and other precious metal funds, marking a fourth successive weekly outflow.
Emerging markets were under pressure as investors offloaded a net $944 million of bond funds and a net $3.4 billion of equity funds for a seventh successive weekly outflow, data covering a combined 28,937 funds showed.
(Reporting by Gaurav Dogra; Editing by Shilpi Majumdar)
