Global Navigator: Plenty of uncertainty for investors to balk at

Even though they knew it was coming, investors reacted defensively to the iconoclastic, on-the-fly policymaking of Donald Trump, with major US indexes moving sideways and the price of gold hitting a fresh record high. The uncertainty generated by the US President’s flurry of proposals, threats and executive orders also shaped their appetite for mutual funds and ETFs, with those offering exposure to alternative asset classes, cash and bonds the preferred options.?

The week ending Feb. 5 saw EPFR-tracked Equity Funds post their first collective outflow since mid-December as redemptions from Dividend Equity Funds and Equity Funds with socially responsible (SRI) or environmental, social and governance (ESG) mandates climbed to 19 and 42-week highs, respectively. But Bond and Money Market Funds pulled in a combined $63.3 billion, Cryptocurrency, Bank Loan and High Yield Bond Funds all pulled in over $2 billion and Physical Gold Funds extended their longest run of inflows since October.?

Other trends captured by EPFR-tracked fund flows during the week ending Feb. 5 reveal:?

• China Equity Funds posted their third outflow of the year.?
• India Equity Funds posted their fifth straight outflow.?
• Flows into dedicated Mexico Equity Funds climbed to a 34-week high.?
• First collective outflow of 2025 from Developed Markets Equity Funds.?
• Europe Equity Funds posted their 18th consecutive outflow.?
• Denmark Equity Funds tallied their biggest outflow in a year.?
• Flows into Japan Equity Funds rebounded to a 14-week high.?
• Financials, Industrials and Telecoms Sector Funds? have experienced this year inflows exceeding 2.2% of their total assets, something that has not occurred since 2022, 2021, and 2020, respectively.?
• Flows into Cybersecurity Funds hit a 52-week high.?
• Emerging Markets Bond Funds posted consecutive weekly inflows for the first time since mid-October.?
• Japan Money Market Funds posted their biggest outflow in over 22 months.?

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