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Dollar beats sterling as money market funds start 2018 strongly

Dollar beats sterling as money market funds start 2018 strongly
USD

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).

 

Jassmyn Goh

Jassmyn reported from Sydney to New York to Jakarta before joining Expert Investor. She was most recently Features Editor at Money Management and Super Review in Sydney.

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