Investment Strategy

Where money went as investors waited for the vote


European stocks rebounded as markets breathed a sigh of relief following Scotland's vote in favor of the union, but in the days running up to the referendum investors pulled money out of bonds and steered clear of Europe completely, data shows.

Bond funds saw their largest weekly redemptions all year, with $3.8 billion taken. The proceeds were poured more or less straight into equity funds, which saw $5.5 billion of inflows, according to Bank of America Merrill Lynch.

Read MoreUK politicians eye 'looser federation' after Scotland vote

Dan Kitwood, Getty Images

European and U.K. equities however were completely eschewed – with European equity funds seeing their largest outflows in over three years. Some $4.6 billion was pulled out, with the U.K. accounting for $1 billion of that figure.

Read MoreMarkets stage relief rally on 'no' vote in Scotland

Investment grade bond funds saw their 39th week of inflows and, despite much of the fear around high-yield bonds subsiding, flows have not completely turned around with outflows over the last 10 weeks totalling $27 billion.

Now the referendum has been decided, the outlook for corporate bonds looks favourable, according to investment director at M&G, Anthony Doyle, who prefers BBB rated corporates, the lower end of investment grade bonds.

"In the high yield market, we believe the environment remains favourable and think that there is only a low probability of the default rate rising in the short term," he said.

Read MoreScotland independence referendum—how they voted

In the government bond market, there could be some "counter-intuitive" downside for gilts now the referendum is out of the way, global head of fixed income at Baring Asset Management, Alan Wilde said.

"One consequence of a "yes" vote was that Bank of England Governor (BoE) Carney was expected to go slowly tightening U.K. rates. This outcome may now lead markets to focus back on growth and conclude that the U.K. economy needs some modest restraint, as the BoE will be ahead of the U.S. Federal Open Market Committee raising official rates," he said.

Sterling, which hit a 10-month low in the week ahead of the vote, bounced back on Friday, climbing to a two-year peak against the euro and a two-week high against the dollar before paring gains.

Read MoreHedge funds short $-£ ahead of Scots vote

"Sterling has strengthened on the back of the election result and the currency market is now likely to refocus on incoming economic data after the election induced volatility of recent weeks," Doyle said.

By CNBC's Jenny Cosgrave: Follow her on Twitter @jenny_cosgrave