Deutsche Bank says discretionary investor positioning falls below neutral

Deutsche Bank strategists have reported that discretionary investor positioning has fallen below neutral levels, while systematic strategy positioning has surged into the top 10% of its historical range. This shift is attributed to elevated equity allocation by volatility control funds within systematic strategies, despite a decline in CTA equity allocation.

The strategists highlighted that mega-cap growth and technology sector positioning is overweight, while energy positioning is also overweight; however, all other sectors remain underweight. Equity funds saw inflows of $15.8 billion, primarily driven by developed market equities, with technology funds posting their largest weekly inflow in a month at $3.3 billion.

Conversely, bond funds attracted $18.8 billion in inflows, while money market funds experienced substantial outflows of $118 billion.

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