Global Navigator: Money flows to the eye of future storms

US President-elect Donald Trump has made it clear he has little truck with the logic of climate change. But investors expect Trump’s presidency will make the global investment climate markedly less stable in the coming years. They are also taking him at his word that ‘America first’ will underpin his administration’s economic policymaking and acting accordingly.

The fourth week of November saw US Equity and Bond Funds absorb another $45 billion while redemptions from Japan and Europe Equity Funds hit seven and eight-week highs, respectively, Emerging Markets Equity Funds extended their longest run of outflows since 4Q23 and another $2.6 billion flowed out of Emerging Markets Bond Funds.

Other key trends reported by EPFR-tracked data also include:

• Seventh straight outflow from Emerging Markets Equity Funds.
• For the third week running, Korea Equity Funds posted inflows.
• Argentina Equity Funds enjoyed record-setting inflows.
• 38th collective inflow of 2024 towards Developed Markets Equity Funds.
• US Small Cap Equity Funds reported the second-largest inflow in nearly three years.
• Flows into Dividend Equity Funds hit a 34-week high.
• Only three of the 11 major Sector Fund groups tracked by EPFR posted outflows.
• Semiconductor Funds attracted over $900 million.
• Real Estate Funds extended their longest outflow streak since 3Q23.
• Year-to-date flows for all Bond Funds climbed past the $770 billion mark.
• Mortgage-Backed Bond Funds posted their second largest inflow year-to-date.
• High Yield Bond Funds recorded their first outflow since the second week of August.

For further insights, please read the full report.