Money market funds were top pick for European investors in October

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Money market funds were the best-selling asset in October, while investors sold out of global emerging market bond funds.

According to Refinitiv Lipper’s European Fund Flow Report for October 2021, money market funds attracted €66.9 billion in net inflows during the month and long-term mutual funds posted €49.2 billion.

The best-selling sector among long term funds was equity global, attracting €12.9 billion in net inflows.

According to the report, the worst-selling Lipper global classifications by estimated net sales were bonds sectors.

Funds Europe state that “the bond emerging markets global, for example, faced the highest estimated net outflows for October at €1.5 billion, bettered by bond emerging markets global hc at €1.4 bn). The equity UK sector lost €1.1 billion.”

Ireland was the fund domicile with the highest net inflows with €34.8 billion in October, followed by France at €32.4 billion, and Luxembourg at €28.0 billion.

Meanwhile, BlackRock was the bestselling fund promoter in Europe, ahead of Amundi and JPMorgan.

Detlef Glow, head of EMEA research at Refinitiv Lipper, said: “Inflows into money market products boosted the fund flows for October 2021, while European investors were in general further in a risk-on mode over the course of the month.”

“Given the general market environment it was no surprise that October 2021 was a positive month for the European fund industry since mutual fund and ETF promoters enjoyed inflows.”

He commented, “The overall flow pattern in Europe showed that investors continued to be in risk-on mode in October even as the general flow pattern was driven by inflows into money market products.”

Source: Funds Europe

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