Risk Aversion still rules money markets funds still getting money!

• It seems hedge funds are not the only industry having money outflow problems... ( $150 billion was withdrawn from hedge funds in December alone). We see money coming out of mutual funds as well.
  
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• The fact that world equity funds are suffering outflows could be bad news for the EM countries- risk aversion means that people continue to withdraw money and are afraid to invest.

• The fresh round of banking troubles can only worsen the situation for small and emerging countries in the short term- lower liquidity means fund withdrawal from their stock and bond markets leaves those emerging markets more subject to shocks and jumps.
  

- The money market funds macro-group (+$127.4 billion) was the only macro-group attracting net flows in December, while stock and mixed-equity funds handed back $27.3 billion and bond fundswitnessed $6.7 billion of net redemptions.

- Large-cap funds (-$5.2 billion) continued to be the flows outcast of the U.S. Diversified Equity (USDE) funds group, while small-cap funds (-$1.0 billion) mitigated outflows better than the other capitalization groups during the month.

- In December the Mixed-Equity Funds macro-group (-$0.4

billion) suffered its fourth consecutive monthly redemption.

The mixed-asset target horizon funds group (+$2.6 billion) just managed to make up for the net redemptions witnessed by the mixed-asset target allocation funds group (-$2.1 billion).

- For the second month in a row the World Equity Funds macro-classification experienced the largest net outflows of Lipper's major equity groups, handing back $15.5 billion.