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Most fund groups start October with a whimper.

"The Doomsday Clock, which has provided one measure of the chances of nuclear war since 1947, currently reads six minutes to midnight. No 'Recession Clock' currently exists. But if it did the minute hand, based on recent investor sentiment, would currently be even closer to the 12 o'clock mark." Thus spoke EPFR Global on the current state of affairs in the markets.

Fears that the Eurozone debt crisis will spread via bank balance sheets to the rest of Europe and the US, thereby blighting already slim hopes of sustaining economic growth, kept markets and the funds that invest in them under pressure during early 4Q11.

Eight of the nine major equity fund groups tracked by EPFR Global posted outflows during the week ending Oct. 5, as did six of the seven major fixed income fund groups and five of the nine major sector fund groups. Overall, Equity Funds recorded collective net redemptions of $11.57 billion, their third worst weekly tally year-to-date, while Bond and Money Market Funds posted outflows of $2.65 billion and $5.84 billion respectively.

Mortgage Backed and Municipal Bond Funds extended their recent inflow streaks, as did Utilities Sector Funds, and cumulative weekly flows into equity funds specialising in dividend paying stocks moved within striking distance of the $27 billion mark. But Emerging Markets Bond Funds suffered another week of outflows, as did two other groups -- Germany Equity and Gold Funds -- that have acquired some 'safe haven' credentials in recent months.

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Publication:CPI Financial
Date:Oct 13, 2011
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