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UPDATE 1-U.S.-based stock funds net first cash in four weeks -Lipper
July 13, 2017 / 11:21 PM / 5 months ago

UPDATE 1-U.S.-based stock funds net first cash in four weeks -Lipper

 (Adds details on mutual funds and ETFs, analyst quote, table,
    By Trevor Hunnicutt
    NEW YORK, July 13 (Reuters) - Investors upped their stakes
in U.S.-based equity funds for the first time in four weeks,
Lipper data showed on Thursday, adding $3.5 billion to stocks in
the latest week.
    Overall, $5.5 billion rolled into exchange-traded stock
funds heavily invested by fast-trading investors, while $2
billion flowed out of retail-oriented mutual funds during the
week ended July 12.
    Market gains during the week and moderate talk from U.S.
Federal Reserve Chair Janet Yellen helped attract a bit of cash
back into domestic stocks. The funds pulled in a net $641
million after three weeks of multibillion-dollar outflows and
prices widely regarded as dear.
    Yellen suggested Wednesday that there may be no need for
many more hikes to bring rates to a "neutral" level that neither
encourages nor discourages economic activity. Rates have been
ultra-low to stoke growth after the 2007-2009 global financial
    Pat Keon, Senior Research Analyst at Thomson Reuters' Lipper
unit, said investors were looking for a reason to step back into
the market. "They're hanging on any good news they can as an
excuse to buy," said Keon.
    Financial sector funds raked in $1.1 billion in cash ahead
of banks' second-quarter earnings results.
    Non-domestic equity funds, which have been popular for the
better part of the year, reeled in another $2.9 billion.
    Still, not all the flow trends were positive. Energy sector
funds posted $407 million in withdrawals, the largest since
April, even as oil has since Friday rebounded a bit from recent
    And while taxable bond funds pulled in $949 million during
the latest week after two weeks of withdrawals, high-yield bond
funds posted $1.1 billion in outflows.
    It was the fourth straight week of withdrawals for "junk"
bond funds that have seen a pullback as investors question rich
    Japanese stock funds posted $799 million in withdrawals, the
most since December 2015, Lipper data showed.
    The Bank of Japan offered to buy an unlimited amount of
government bonds last week to calm the effects of a broad
developed-market debt selloff. Yen weakness hurts investors in
Japanese stocks who convert their returns back into a currency
that has strengthened, like the U.S. dollar.
    The following is a breakdown of the flows for the week,
including mutual funds and exchange-traded funds:
 Sector                    Flow Chg  % Assets  Assets     Count
                           ($blns)             ($blns)    
 All Equity Funds          3.521     0.06      6,051.030  11,533
 Domestic Equities         0.641     0.02      4,207.605  8,263
 Non-Domestic Equities     2.880     0.16      1,843.425  3,270
 All Taxable Bond Funds    0.949     0.04      2,465.461  5,818
 All Money Market Funds    -1.245    -0.05     2,483.786  1,104
 All Municipal Bond Funds  -0.173    -0.04     388.427    1,407
 (Reporting by Trevor Hunnicutt; Editing by Jennifer Ablan and
Tom Brown)

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