LSEG Lipper: Money market funds top European flows tables in July
Beyond bond and money market funds, all other asset types faced outflows for the month.
The fund researcher's report said «it is not surprising that European investors bought money market products» in the current market environment.
«Since the Eurozone and other major economies have an inverted yield curve…money market products offer a higher yield than medium or long-term bonds», it said.
The next most loved asset category was bond funds, which took in €15.2bn, followed by equity funds, which saw inflows of €0.7bn.
All other asset types faced outflows for the month.
LSEG Lipper: Bond funds take lion's share of asset flows for 2023
Mixed asset funds saw the biggest outflows (€11.1bn), followed by alternative UCITS funds (€4bn), ‘other' funds (€1.5bn), commodities (€0.6bn) and real estate funds (€0.5bn).
Long-term mutual fund products posted net outflows of €1.7bn for July, but enjoyed inflows of €50.7bn over the course of the first seven months of the year.
Overall fund flows for mutual funds and ETFs in Europe in July amounted to estimated net inflows of €14bn, while the European fund industry has benefitted from total inflows of €72.9bn for the year 2023 so far.
On why the European fund industry enjoyed net inflows in July, the report said market sentiment «was still driven by hopes that central banks, especially the US Federal Reserve, may have reached the last phase of their fight against high inflation rates», leading to a stabilisation of interest rates soon.
Some investors already expect there might be room for decreasing interest rates later this year or early next year, it added.
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