(by Arthur Headner)

Bond market sees more investments from global funds this month, research data show.

“High oil prices, weak earnings results and expectations of slowing growth lured investors out of equities and into bond funds in October,” said Brad Durham, managing director at EmergingPortfolio.com, the company that revealed the data.

Global funds really withdrew their money from equities this month on freak market and political situation in the country, specialists say.

EmergingPortfolio.com data shows asset managers in charge of $3,000 billion (£1,640 billion) in investments bought a net $996 million of bonds in October but sold a net $135 million of stocks.

“Most bonds are held by investors, such as banks and hedge funds, that borrow to buy. For them, the cost of financing is the most important factor. Investing in equities is a much riskier proposition that is much more difficult to justify to your bank manager,” said Ciaran O’Hagan, bond strategist at Lehman Brothers.

Global bond funds added $5.4 billion in net investments with growing 7.4% assets so far this year.