Money market funds were the beneficiaries of investor caution during the last week of July.
Inflows for the week soared to a year–to-date high of £31 billion (€23.6 billion) as investors scrutinised statements following central bank meetings.
There had been hopes that policy makers at the US Federal Reserve, European Central Bank and Bank of Japan would not press ahead with normalising monetary policy, given low inflation rates.
Europe money market funds had their longest run of outflows since the end of the fourth quarter 2009.
Investors pumped more money to emerging markets equity funds for the nineteenth consecutive week in late July, a positive reaction to the pace of monetary tightening in the US and Europe. It is the longest inflow streak since the first quarter 2013.
Gold, utilities and real estate funds experienced outflows during the week ending July 26 while financial sector funds attracted over $1 billion for the fourth week running.
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