What EPFR data tells us about the likelihood of greater volatility

Five weeks into President Donald Trump’s first term, flows to EPFR-tracked Europe Equity Funds were coming out of a long slump, investors were rediscovering the charms of diversified exposure, Alternative Funds were posting their fourth straight inflow and a combined $52 billion had flowed into US Equity and Bond Funds. Eight years later, the final week of February saw Europe Equity Funds extend their longest inflow streak since mid-2Q24, Global Equity and Bond Funds both pull in over $1.5 billion, Alternative Funds post their fifth consecutive inflow and combined flows into US Equity and Bond Funds since Inauguration Day hit $130 billion.

Funds dedicated to the old world and conventional asset classes enjoyed a rare moment in the sun during the second week of February, which ended with the new US administration promising reciprocal tariffs on trading partners and a higher-than-expected February inflation number for the world’s largest economy.

Funds dedicated to the old world and conventional asset classes enjoyed a rare moment in the sun during the second week of February, which ended with the new US administration promising reciprocal tariffs on trading partners and a higher-than-expected February inflation number for the world’s largest economy.