Our measure of aggregate equity positioning is still in the lowest decile (9th percentile, z-score: -0.81). Systematic strategy positioning is extremely low (4th percentile, z-score: -1.8). Discretionary positioning (40th percentile, z-score: 0.01) is closer to neutral and commensurate with slowing macro growth but not an outright contraction. Within systematic strategies, vol control funds’ equity allocation is extremely low at just 41% (5th percentile); CTA equity allocations rose modestly from extremes but are still very low (4th percentile); risk parity funds’ equity allocation also declined modestly and remains underweight. Equity funds (MFs & ETFs) suffered a 5th consecutive week of outflows, driven particularly by EM funds (-$4.4bn) which suffered their worst weekly outflow in 2 years. Europe (-$2.3bn) saw outflows for a 13th week running, while broad-global funds (-$0.2bn) also saw modest outflows. US ($0.1bn) and Japan ($0.4bn) however ended the week with modest net inflows. All dedicated sector funds suffered outflows this week, led by Financials (-$2.6bn) who have been seeing outflows since mid-February, while Tech (-$1.1bn), Industrials (-$0.9bn) and Materials (-$0.7bn) saw their largest outflows of the year. - Deutsche Bank
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