Equity and high-yield bond funds saw their biggest weekly outflows this year in the week before the UK election.
Global equities saw outflows again last week, as the bull market in equities seems to be losing steam.
The Nasdaq and the S&P 500 hit new record highs last week, but there has been a big decoupling between the prices of US stocks and capital flows.
As capital flows go, the week that ended on April 8 brought a paradox: the world’s best performing market over the past 12 months saw money flowing out, rather than in.
Hedge funds have turned bearish on emerging markets on a medium-term outlook, a recent survey of investors showed.
Investors are coming off US equities, with US equity funds recording $44 billion worth of redemptions so far this year. This was the worst start to the year since the 2009 crash, flows data show.
The bulls were out in force even before the dovish Federal Reserve announcement last week, according to capital flows data.