Swiss investors shift from cash-Lipper data

* Investors switch 5 bln Sfr out of cash in October

* Negative performance sinks asset values by 7 bln Sfr

ZURICH, Nov 11 (Reuters) - Assets in Swiss-registered funds sank by almost 8 billion Swiss francs ($7.94 billion) in October as a negative performance from equities hit valuations, Lipper data showed on Wednesday.

Outflows accounted for 1 billion francs of the reduction, as investors pulled almost 5 billion francs from money market products, switching mainly into bonds and "other asset classes" which include hedge funds and commodities.

"The money market outflows show that, with yields at historically low levels, investors are adding risk in the search for better returns," said Lipper head of methodology Otto Kober.

"But they are doing so prudently, with assets diverted to low risk instruments such as higher yielding bonds."

The big loser was equities, where assets fell by 4 billion francs as falling share prices far outweighed inflows of around 560 million francs. Even so, equities remained the largest single asset class, with 172 billion francs under management. Commodities had inflows of 1.3 billion francs, with gold exchange traded funds (ETFs) accounting for the lion's share.

"Credit Suisse launched its physically-backed gold ETF during the month, and it had inflows of over 1 billion francs, which accounted for most of the inflows into commodities this month," said Kober.

UBS (UBSN.VX)(UBS.N) remained the largest manager of Swiss-registered fund assets with almost $150 billion or a 25 percent share, followed by Credit Suisse with 19 percent and privately-held Pictet with 13 percent.

Private bank Pictet reported the biggest outflows of any institution, with investors pulling more than 3 billion francs during the month.

($1=1.008 Swiss Franc)