Money market funds have enjoyed their “best year on record” in 2023, with inflows over the last twelve months exceeding the previous eight years combined, Calastone’s Fund Flow index has found.
Last year, a record £4.4bn was paid into money market funds, as high interest rates and low risk proved attractive to investors. However, as sentiment towards riskier assets rose sharply in December, inflows to money market strategies fell to £294m, well below the average of the previous six months, Calastone noted. ESG funds suffered the opposite fate, registering the first year of net selling since the ESG boom began in 2019. Equity funds gather £449m inflows after six months of net selling In 2023, ESG funds shed nearly £2.4bn, with December marking the eighth consecutive mon...
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