€100bn of MMF assets moves out of EU peripherals
0European money market funds have continued to move their assets away from peripheral Europe, in some cases using Asian, Middle Eastern and Nordic credits instead, according to new research from Fitch.
The ratings agency found that almost 20% of European MMFs’ portfolios by geography had been reallocated in the last two years. This represents €100billion-worth of assets.
The funds had held nothing in Greece, Ireland and Portugal since September 2010 but they are now also clear of Italian and Spanish paper. A 75% exposure to Europe is maintained through core EU states such as Germany and Holland.
Among the funds that Fitch rates 12% invest in Middle Eastern issuers and 25% in Asian ex-Japan issuers. Exposure to Asia Pacific increased on average 7% over the past two years.
