Political uncertainty in the US has led global investors to redeem money in US equity funds for seven of the past nine weeks according to fund flows data provider EPFR Global.
EPFR said that between the election of Donald Trump as US president last November and the third week of March investors had committed over $90 billion (€80.1 billion) to US equities.
But, EPFR said, “a string of missteps by the president and his administration have sapped investor faith in Trump’s reflationary promises” and since the last week of March, this had led to flows being reversed by an unspecified amount.
EPFR added that Trump’s abrupt firing of FBI director James Comey had contributed to falling investor confidence in US equities.
Investors have nevertheless retained enthusiasm for emerging market equity and bond funds and committed fresh money to European equity funds for the eighth week running while at the same time channeling $3.8 billion into global equity funds.
Overall, bond funds posted a collective net inflow of $9.7 billion during the five days to May 17 versus outflows of $1.6 billion from equity funds and over $19 billion from money market funds.
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