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UPDATE 1-Investors flee health, bank and tech funds in search of safety -Lipper
February 12, 2016 / 12:36 AM / 2 years ago

UPDATE 1-Investors flee health, bank and tech funds in search of safety -Lipper

(New throughout; adds data, context, analyst quote)
    By Trevor Hunnicutt
    NEW YORK, Feb 11 (Reuters) - Investors pulled money from
U.S.-based stock funds again during the most recent week, piling
into Treasuries, gold and other safe-haven assets as global
market performance continued to falter.
    The stock funds posted $1.5 billion in withdrawals during
the week that ended Feb. 10, Lipper data showed on Thursday, as
money fled the risk assets for the sixth straight week.
    Stock indexes worldwide fell further on Thursday on fears
over the health of the global economy, with MSCI's all-country
world equity index closing the day more than 20
percent below its record high last May, confirming global stocks
are in a bear market. 
    "It was kind of a wipeout," Lipper analyst Tom Roseen. "This
wasn't a good week."
    Equity outflows were led by a dramatic pullback from
once-popular growth areas.
    Healthcare stocks, which rallied in 2015, posted their
largest outflows since Lipper's record-keeping began in 1992.
Investors pulled nearly $2 billion from the funds during the
weekly period, Lipper said.
    Financial and banking sector funds - once seen as thriving
when the U.S. Federal Reserve hiked rates - lost $1.1 billion to
outflows. It was the largest withdrawals since August, according
to Lipper. Those shares lost appeal on fresh expectations that
market volatility will force the Fed to delay its promised path
to higher interest rates. 
    And investors took $824 million back from technology-sector
fund managers, the sixth straight week of such withdrawals, as
risk-off sentiment took root, Lipper data showed.
    Taxable-bond funds attracted $1.6 billion in new cash during
the same period, marking their third straight week of inflows,
according to data from the fund research service.
    That result was led by $1.2 billion that moved into low-risk
U.S. Treasury funds.
    While funds focused on investment-grade corporate bonds
attracted $551 million in new money - their first inflows since
November - riskier high-yield bond funds posted $1 billion in
    Precious metals commodities funds, which include investments
tracking gold's price, took in $631 million during the week,
Lipper said, marking their fifth straight week of inflows.
    Some investors were willing to take on risk. Overall,
non-domestic-focused stock funds took in $1.6 billion over the
weekly period, with many investors adding money to developed
markets outside the U.S.
    And funds targeting the long-battered energy sector
attracted $264 million in new money during the week.
    Money-market funds posted $4.1 billion in outflows during
the weekly period, Lipper said.
    The following is a broad breakdown of the flows for the
week, including exchange-traded funds (in $ billions):
 Sector                    Flow Chg  %       Assets     Count
                           ($Bil)    Assets  ($Bil)     
 All Equity Funds          -1.504    -0.03   4,493.793  11,971
 Domestic Equities         -2.172    -0.07   3,156.559  8,526
 Non-Domestic Equities     0.668     0.05    1,337.234  3,445
 All Taxable Bond Funds    1.579     0.07    2,123.632  6,088
 All Money Market Funds    -4.052    -0.17   2,395.865  1,150
 All Municipal Bond Funds  0.941     0.26    368.740    1,506
 (Reporting by Trevor Hunnicutt; Editing by Chris Reese, Bernard

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