Fund commentary

Aviva Investors Euro Liquidity Fund

Month in review for May 2024

Demi Angelaki

Fund Manager


Month in review

Money markets reflected the strong expectation that the European Central Bank (ECB) would start to cut interest rates at its next meeting in early June.

Looking ahead

Having cut interest rates, the ECB remains cautious on the delivery of further reductions given uncertainty about the path of inflation. It continues to stress that decisions will be data dependent.

Key facts

Fund managers
Demi Angelaki since 12/2020,
Richard Hallett since 03/2022
Share class inception date
Fund size (as at 31/05/2024)
EUR 2877.8m
MPS BM for Euro Liquidity Fund

Fund overview

Objective: The investment objective of the Sub-Fund is to offer returns in line with money market rates and preserve the value of the investment. The Aviva Investors Euro Liquidity Fund is a Short-Term Variable Net Asset Value (VNAV) Money Market Fund.

Month in review

Money markets reflected the strong expectation that the European Central Bank (ECB) would start to cut interest rates at its next meeting in early June. The market began to bet that the continued lacklustre performance of the region’s economy had become the overriding factor in shaping policy, despite inflation proving to be a little more sticky than expected in recent data (initial estimates for May inflation showed CPI rising from 2.4% to 2.6% and core inflation rising from 2.7% to 2.9%). Europe’s manufacturing sector remained in the doldrums, although the closely monitored PMI survey suggested the pace of its contraction was slowing, thereby offering some cause for optimism for the economy as a whole.
In the fund, lower assets under management over the month (€2.87 billion) and the addition of some longer-dated fixed-rate securities raised the portfolio’s weighted average maturity (WAM) to 29 days. The weighted average life (WAL) fell slightly to 59 days. The fund’s gross daily yield was 4.02% as at month end.











For the latest Monthly, Cumulative, and Annualised Fund performance data please refer to the PDF factsheet below.

Past performance is not a guide to future performance
Basis: Mid to mid, net income reinvested, net of ongoing charges and fees, in the share class reference currency and net of tax payable by the Fund. For full details of the benchmark please see the PDF factsheet.

The Fund's performance is compared against the 7 day EUR Libid.

Looking ahead Last updated 30 April 2024

As expected, the ECB cut its three key interest rates by 25 basis points at its meeting on 6 June. This was despite it raising its inflation (headline and core) expectations for 2024 and 2025 compared to March. The bank noted that domestic price pressures remain strong, with inflation “likely to stay above target well into next year” and that it would keep policy rates sufficiently restrictive for as long as necessary to achieve the 2.0% target. There was a strong emphasis during the following press conference that the bank would not commit to a particular rate path, with decisions being made using a meeting-by-meeting and data-dependent approach. Given the cautiousness of the ECB’s tone, markets began to price two cuts or fewer for the remainder of the year.
In the fund, we will look for opportunities to extend duration. However, we are cautious on negative carry for longer tenors, particularly as the monetary policy path is not very clear after June. We still like asset-backed commercial paper and European agencies (SSAs) for liquidity purposes. We have a neutral stance on spread duration and moderate exposure to floating-rate securities.


Full information on risks applicable to the Fund are in the Prospectus and the Key Investor Information Document (KIID).

Investment and currency risk

The value of an investment and any income from it can go down as well as up and can fluctuate in response to changes in currency exchange rates. Investors may not get back the original amount invested.

Money market securities risk

When short-term interest rates fall, the yield on money market instruments generally falls. In extreme market conditions, the value of money market instruments could fall, perhaps significantly.

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Important information


The source for all performance, portfolio and fund breakdown data is Morningstar unless indicated otherwise. For share classes that have not yet completed 5 years, the cumulative performance chart will start from the first full month. All data is as at the date of the Factsheet, unless indicated otherwise.

Unless stated otherwise any opinions expressed are those of Aviva Investors. They should not be viewed as indicating any guarantee of return from an investment managed by Aviva Investors nor as personalised advice of any nature. This document should not be taken as a recommendation or offer by anyone in any jurisdiction in which such an offer is not authorised or to any person to whom it is unlawful to make such an offer or solicitation. Portfolio holdings are subject to change at any time without notice and information about specific securities should not be construed as a recommendation to buy or sell any securities.

For further information please read the latest Key Investor Information Document and Supplementary Information Document. The Prospectus and the annual and interim reports are also available on request. Copies in English can be obtained, free of charge from Aviva Investors Luxembourg S.A., 2 rue du Fort Bourbon, L-1249 Luxembourg or from J.P. Morgan Administration Services (Ireland) Limited. You can also download copies at

Where relevant, information on our approach to the sustainability aspects of the fund and the Sustainable Finance disclosure regulation (SFDR) including policies and procedures can be found on the following link:

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