Assets continue to build up in US Money Market Funds

While pent-up consumer demand and catch-up business investment have been key assumptions behind the US reflation story, one reservoir of fuel for this narrative continues to fill up. During the week ending May 26, flows into EPFR-tracked US Money Market Funds hit a 51-week high, lifting year-to-date inflows to these liquidity vehicles over the $300 billion mark.

Investors remain torn between the eye-popping rebound in US economic growth, bolstered by epic levels of fiscal stimulus and expectations that the combination of current vaccinations and past infections will add up to ‘herd immunity’ against Covid-19 by 3Q21, and fears this rebound will lift inflation – and inflationary expectations – to disruptive heights. US Equity Funds recorded their 15th inflow in the past 16 weeks while Bank Loan and Inflation Protected Bond Funds absorbed fresh money for the 21st and 27th consecutive week respectively and flows into Gold Funds hit a 35-week high.

Graph depicting the 'Top 15 fund groups by net inflows in Q1 2021, and the top 15 fund groups by net inflows, quarter-to-date'.Graph depicting the 'Cumulative weekly flows and performance for Vietnam equity funds, from 2019 to date'.

Did you find this useful? Get our EPFR Insights delivered to your inbox.

Related Posts

Green shoots for Europe stock funds

Green shoots for Europe stock funds

With the Bank of England and the European Central Bank widely expected to follow the example of their Swedish and Swiss counterparts, and start cutting interest rates at their June policy meetings, investors waded a little deeper into the European equity pool during the second week of May.

Living through interesting times

Living through interesting times

Weaker US job creation numbers and the first interest rate cut by Sweden’s central bank since 2016 gave investor risk appetite a modest boost during the first week of May. Flows to all EPFR-tracked Equity Funds climbed to a six-week high, High Yield Bond Funds recorded their biggest inflow since early November and Europe Equity Funds posted consecutive weekly inflows for the first time in over 14 months.

Sell in May and go away until 2025?

Sell in May and go away until 2025?

The final week of April ended with US markets closing the books on their worst month since September, the price of Bitcoin down some 17% from its mid-March high, Russia on the offensive in Ukraine and US interest rate cuts nowhere in sight. Against this backdrop, flows to most EPFR-tracked fund groups remained subdued for the second week running.

Better, More Actionable Insights

Let us show you how EPFR can create value for your specific strategy