For example, most jurisdictions have measures in place that preserve the stability of mutual funds and limit the consequences of a sudden run on the part of their investors, such as liquidity requirements, rules restricting the amount of illiquid assets that can be held by open-end funds, redemption suspension and redemption gates.
However, after this June peak and for the remainder of 2016, the build-up to and outcome of the US presidential election sparked a wave of outflows from emerging markets, with portfolio flows estimated to have plummeted to a 41-month low as the so-called ‘Trump Trade’ favoured a stronger US dollar and higher US yields.