US equity and bond funds saw redemptions last week and money market funds saw large inflows as investors prepared for the US election result.
Over $35 billion (€31.4 billion) flowed into US money market funds, said EPFR Global.
“These flows reflected the uncertainty surround the November 8 vote and investors’ discomfort with both of the major candidates, Democrat Hillary Clinton and Republican Donald Trump,” the firm said.
Nine months’ of redemptions from European equity funds ended and saw “modest” inflows of $83 billion. However, Eurozone investors continue to “bail out” of funds dedicated to regional equity – with the exception of Switzerland – but are showing some appetite for emerging markets and global equity funds, EPFR Global said.
Funds investing in riskier assets struggled, including emerging market equity funds, which posted net outflows for the second time in in the second half of 2016, and over $4 billion was pulled out of high yield bond funds.
Inflation-protected bond funds attracted “record setting” inflows.
Overall, the week ending November 2 saw net outflows from bond funds that EPFR Global tracks of $1.1 billion and equity funds net redemptions of $2.8 billion while over $26 billion was committed to all Money Market Funds.
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