As flows into cash funds gained momentum, flows into all other asset classes declined. Equities held up quite well still, registering a net $29.5bn in inflows, but flows into multi-asset funds and alternatives fell considerably. Bond flows were net negative, just like in June.
‘Cash is king’
The figures do not come as a surprise to Tim Peeters, head of securities portfolios at the
Belgian multi-family office Portolani. “Cash is king at the moment, especially compared to bonds,” he says. Peeters has allocated almost 20% of his portfolio to cash and short-duration corporate bonds, all of this in dollar.
“I see about 10% upside potential in the dollar compared to the euro,” he says. “And in any case, I prefer exchange rate risk over interest rate and duration risk.”
In the next edition of our magazine, out in a few weeks time, we will take a more in-depth look at the current attractiveness of cash as an asset class.