Deep Dive: Investors in money market funds at risk of missing out on next fixed income rally

Correlated with Fed's fund rates

Eve Maddock-Jones
clock • 4 min read

Investors that have piled into money market funds are at risk of missing out on the next bond market rally, experts told Investment Week.

Money market funds have been experiencing positive inflows for several months now, especially among UK investors. In 2023, the average monthly inflow for the money market fund sector was £400m from UK investors, according to Calastone's Fund Flow Index report. While this has dipped so far 2024, with £78m inflows in February and £56m in January, the positive trend has been maintained. Monika Carlson, head of fixed income business development at AllianceBernstein, said that investors in these portfolios who "wait to get off the sidelines" are at risk of missing out on returns once the F...

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