June 8, 2017 / 9:07 PM / a month ago

UPDATE 2-Flight-to-quality boosts U.S.-based Treasury, foreign funds -Lipper

4 Min Read

 (Adds detail on U.S.-based commodities precious metals funds,
emerging market equity and fixed-income funds; table)
    By Sam Forgione and Jennifer Ablan
    NEW YORK, June 8 (Reuters) - Investors in U.S.-based funds
poured $1.4 billion into mutual funds and exchange-traded funds
that invest in U.S. Treasuries in the week ended June 7, marking
the biggest inflows since late January, data from Thomson
Reuters' Lipper service showed on Thursday.
    Funds that invest mainly in foreign debt securities also
attracted $1.4 billion in new cash, marking their biggest
inflows since July 2016. The Lipper Commodities Precious Metals
Funds, which include gold, attracted $799 million over the
weekly period. Conversely, stock funds posted $5 billion in
outflows after attracting $9.2 billion in inflows the prior
week. 
    Tom Roseen, head of research services at Thomson Reuters
Lipper, said the inflows into safer markets were "not so
surprising considering the 'Super Thursday' events." He was
referring to Thursday's European Central Bank policy
announcement and the U.K. general election as well as the U.S.
Senate testimony of James Comey, the former FBI director fired
by President Donald Trump in May.
    Those events "caused a lot of investors to sit on their
hands for the week," Roseen said.
    Investors pulled cash from both U.S.-based stock mutual
funds and stock ETFs. U.S. mutual funds posted $3.1 billion in
outflows and stock ETFs saw $1.9 billion of cash withdrawals.
    Investors still had some appetite for corporate bonds and
emerging-market securities. 
    U.S.-based emerging markets equity funds attracted $696
million of inflows over the weekly period, their fourth straight
week of inflows, Lipper said. U.S.-based emerging markets debt
funds posted inflows of $1.3 billion over the weekly period,
their biggest inflows since July 2016, Lipper added.
    U.S.-based corporate investment-grade bond funds attracted
$3.7 billion of inflows over the weekly period, meanwhile,
extending the group's inflow streak since mid-December,
according to Lipper data. 
    "Investors still padded the coffers for investment-grade
debt funds, international and global debt funds and flexible
portfolio funds, although Treasuries and govvies did get more
play than usual," Roseen said.
    The following is a broad breakdown of the flows for the
week, including mutual funds and exchange-traded funds:
 Sector               Flow Chg        %      Assets       Count
                      ($Bil)          Asset  ($Bil)       
                                      s                   
 All Equity Funds     -5.018          -0.09  5,951.414    11,388
 Domestic Equities    -6.194          -0.15  4,159.211    8,156
 Non-Domestic         1.176           0.07   1,792.203    3,232
 Equities                                                 
 All Taxable Bond     7.346           0.30   2,429.400    5,756
 Funds                                                    
 All Money Market     4.502           0.19   2,435.387    1,062
 Funds                                                    
 All Municipal Bond   0.985           0.26   386.674      1,391
 Funds                                                    
 
 (Reporting by Sam Forgione and Jennifer Ablan; Editing by David
Gregorio and Tom Brown)
  

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