Deutsche Bank-Investor Positioning and Flows Choppy Positioning, Solid In...-118480396

T2se3r0Ot6kwoPaT2se3r0Ot6kwoPaDistributed on: 24/10/2025 21:51:43 GMTDistributed on: 24/10/2025 21:51:43 GMT24 October 2025nDiscretionary investors tiptoe back but remain underweight. Our measure of aggregate equity positioning rose modestly this week but is still close to neutral after the sharp cuts last week (0.15sd, 50th percentile). Discretionary investors raised exposure slightly (-0.22sd, 33rd percentile), as fears around bank credit issues eased and with the ongoing Q3 earnings season on track to deliver a solid pickup in growth to over 13% yoy (Q3 2025 Earnings Early Takes, Oct 24 2025). But they remain underweight and if earnings growth remains as robust, they have plenty of room to raise exposure. Systematic strategies maintained their positioning, remaining well above neutral, though not as elevated as two weeks ago (0.61sd, 76th percentile).nPockets of momentum chasing continued to unwind. Continuing a move that began late last week, a basket of stocks with the highest net call volume in the previous week significantly underperformed again this week, as did a basket of the most-shorted stocks. This is a good indicator in our view that the pockets of momentum chasing were unwound further after the large rally in the previous month (Momentum Driven Buying Meets Trade Escalation, Oct 10 2025).nSolid equity fund inflows again, but mainly into the US. Equity funds ($14.2bn) received inflows for a sixth straight week (Inflows Boom, Oct 3 2025), but at a somewhat slower pace this week. Inflows this week were largely driven by the US ($13.3bn), with notable inflows to Europe ($2.0bn) as well. However, China, which had seen very strong inflows in the previous 5 weeks, saw outflows this week (-$1.8bn). Notably, all dedicated sector fund groups received inflows this week, a rare occurrence last observed four years ago. Tech ($3.5bn) and Materials ($1.7bn) funds led the inflows again, though not at last week’s record-setting pace. Separately, Gold funds ($6.4bn) had clocked record weekly inflows just prior to this week’s selloff.Parag ThatteStrategist+1-212-250-6605Binky ChadhaChief Strategist+1-212-250-4776Karthik PrabhuStrategist+1-212-250-1246Ben LipsiusStrategist+1-212-250-9671Deutsche Bank Securities Inc.IMPORTANT RESEARCH DISCLOSURES AND ANALYST CERTIFICATIONS LOCATED IN APPENDIX 1. Deutsche Bank does and seeks to do business with companies covered in its research reports. Thus, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. Deutsche BankResearch Global Asset Allocation Investor Positioning and Flows Date Strategy Update Choppy Positioning, Solid Inflows24 October 2025Investor Positioning and FlowsPage 2Deutsche Bank Securities Inc.Positioning and flows detailsnUnder discretionary investor positioning,nThe ratio of call to put volume (5d ma) fell this week (68