The latest Lipper European fund flows report found new inflows into US dollar money market funds rose €22.4bn last month, while sterling-denominated money market funds saw net outflows of €6.7bn.
The report found euro-denominated money market funds were second to US dollar funds at €15.1bn in net inflows, followed by global equity funds at €11.6bn, and global emerging markets equity funds at €4.9bn.
Money market products were also the second best selling asset class for the month at €29.8bn, with equity funds just ahead at €30.2bn. Exchange Traded Funds (ETFs) investing in money market instruments posted net outflows of €0.3bn. Within the money market sector, Polish zloty money market funds came third in terms of flows at €0.3bn.
However, net outflows were seen for euro leveraged money market funds at €0.5bn, Norwegian krone money market funds at €0.4bn, sterling denominated money market funds were bottom of the sector for the month.
UK equity funds also suffered outflows of €1.7bn, along with high yield USD bonds at €1.3bn.
The flows, in terms of domiciles, headed mostly into Luxembourg funds which grew by €26.2bn in January, followed by France at €25.1bn (with €23.6bn going into money market funds), Ireland at €20.8bn, Switzerland at €5.8bn, and the UK at €4.4bn.
The domiciles with the highest net outflows from equity funds were Italy (€1.9bn), Isle of Man (€0.4bn), and Jersey (€0.3bn).