Investing.com -- Technology funds suffered record outflows of $9.3 billion last week as investors reduced overall equity exposure, with aggregate positioning slipping to slightly below neutral, according to Deutsche Bank strategists.

In a note by a team including analyst Parag Thatte, Deutsche Bank said discretionary positioning has fallen to modestly underweight while systematic strategies remain modestly overweight.

Within systematic strategies, volatility control funds’ equity allocation remained at moderate levels while commodity trading advisors’ positioning remains in the upper half of the historical range.

Deutsche Bank said positioning has dropped across most sectors, with mega-cap growth and technology falling to slightly below neutral, a shift that coincided with the record tech fund outflows recorded last week.

Equity funds overall registered modest outflows of $5 billion, with U.S.-focused funds accounting for the bulk of the selling at negative $8.5 billion.

Broad global funds are said to have bucked the trend, continuing to attract solid inflows of $14.4 billion, suggesting investors are rotating away from concentrated U.S. technology exposure toward more diversified international allocations.

In fixed income, inflows to bond funds slowed to their weakest pace in two months at $16.6 billion, while money market funds saw outflows of $25.5 billion, indicating some reduction in cash hoarding despite the cautious tone in equities.

The data points to a broader repositioning by investors as concerns mount over stretched valuations in the technology sector following a strong run earlier in the year, with the record tech fund outflows a notable signal of shifting sentiment.