Cash fund domination continues as European investors stay cautious

Added 22nd November 2016

European investors poured money into money market funds in October, as caution continued to rule the roost.

Cash fund domination continues as European investors stay cautious

According to the latest Thomson Reuters Lipper European Fund Flow report, €29.4bn flowed into the asset class during a month, that saw net inflows into everything buy equities.

The second most popular sector at a net level was mixed assets, which recorded €4.6bn in inflows, with bonds recording inflows of €2.7bn at an aggregate level.

When looked at in more detail however, clear preferences emerged.

As is evident from the graph below, with €20.9bn in inflows, euro-denominated money market funds were the clear winner. These funds pulled in roughly four times the inflows of the next best sector, US dollar-denominated money market funds.


Within bonds, emerging market debt, global bond funds and inflation linked bonds both global and euro-denominated were in favour.

On the other side of the equation, sterling corporate debt and European government debt saw significant outflows over the period.




















“Even though these flow numbers seemed to indicate that European investors continued to stay cautious in October, the sector flows showed they further tended to chase yield,” Detlef Glow, Head of EMEA Research at Thomson Reuters Lipper said. 

At a sectoral level, euro-denominated funds reported €20.9bn in inflows, continuing the trend seen in September. Similarly, as in September, US dollar and sterling denominated industries also saw a continuation of inflows in October of €5.3bn and £3.2bn respectively.

At an aggregate level, fund flows into mutual funds in Europe recorded net inflows of €33.8bn for October.


Overseas earners will be key amidst 2017 inflation

Sponsored by Neptune

Overseas earners will be key amidst 2017 inflation...

A by-product of sterling weakness is inflation, and we expect this to continue to gather steam over the coming months, with energy and food prices the hardest hit....

Kames Income Hub


Vincent McEntegart, manager of the Kames Diversified Monthly Income Fund, explains how he aims to deliver a stable and sustainable income of 5% p.a.*, paid monthly, by investing in a range of asset classes

Square Mile Research

AXA Distribution Fund
AXA Distribution Fund

Talking Factsheets is a video service for users...

Visitor's Comments Add your comment

Add Your Comment

We won't publish your address

About Author

Geoff Candy

Group digital editor

Geoff Candy joined Portfolio Adviser as News Editor in May 2014. He has been a financial journalist and broadcaster since 2005 and, in that time has worked in both South Africa and the Netherlands, covering everything from high street retailers and construction companies to mining and insurance.



Investment Strategy




PA Alternative Ucits 2017 Congress
PA Alternative Ucits 2017 Congress

Tuesday 25 April
The Langham, London

PA Europe 2017
PA Europe 2017

Thursday 11 May
Furniture Makers' Hall

PA Channel Islands 2017
PA Channel Islands 2017

Wednesday 24 May
Royal Yacht Hotel, Jersey

PA UK Equity 2017
PA UK Equity 2017

Thursday 15 June
Radisson Blu Edwardian Bloomsbury Street Hotel

Sponsored Content

Investment Strategy