Historically, Switzerland has always been seen as a quiet country. Its neutrality in the two World Wars and its political and institutional stability are to blame.
Regarding the financial markets, Switzerland has also been seen favorably. So much so that, surprisingly, during the Covid-19 crisis in March this year, investors took refuge by investing in shares of the Swiss country.
This occurred while the vast majority of equity categories were experiencing massive outflows, that probably went to the money market.
Likewise, Swiss money market funds also experienced inflows during March, in line with many of the money market funds denominated in other currencies.
Curiously, the Euro Money Market did not obtain positive flows during the month of March. Investors seem to trust the Swiss Franc more than the European currency. The political uncertainty surrounding the European Union is also present in the markets.