June 13, 2019 / 8:21 PM / 7 days ago

UPDATE 1-Risk appetite emerges as U.S.-based equity funds attract $4.4 bln

 (Adds quotes from head of research services at Lipper, table;
byline)
    By Jennifer Ablan
    June 13 (Reuters) - U.S.-based equity funds attracted $4.4
billion of inflows in the week ended Wednesday, following two
consecutive weeks of cash outflows totaling $34 billion,
according to Refinitiv's Lipper, as the United States and Mexico
struck a deal to avert tariffs. 
    U.S.-based high-yield junk bond funds - which move in
sympathy with equity flows - attracted more than $1.7 billion of
inflows in the week ended Wednesday, also following two straight
weeks of cash withdrawals, Lipper said.
    Tom Roseen, head of research services at Lipper, said it was
"definitely a risk-on week" with net new money into corporate
investment-grade bond funds of more than $4 billion.
    "Interestingly, though, we saw retail investors being net
redeemers of equity funds at negative $4.9 billion, while
authorized participants were net purchasers of equity ETFs at
plus $9.4 billion. So once again it was a tale of two cities,"
Roseen said. 
    Mom-and-pop investors "appear to be content sitting on the
sidelines until the trade deals are completed, parking cash into
the money market funds of more than $12.9 billion," he said.
    Mom-and-pop investors are also putting money into select
bond fund classifications: corporate investment-grade debt funds
of plus-$1.2 billion and municipal bond funds of plus-$887
million, their 23rd consecutive week of net inflows.
    
    The following is a broad breakdown of the flows for the
week, including mutual funds and exchange-traded funds:  
 Sector                Flow Change  Pct of    Assets     Count
                       ($ blns)     Assets    ($ blns)   
 All Equity Funds      4.434        0.06      7,145.669  11,820
 Domestic Equities     7.233        0.14      5,095.172  8,414
 Non-Domestic          -2.799       -0.14     2,050.497  3,406
 Equities                                                
 All Taxable Bond      7.193        0.25      2,914.588  5,840
 Funds                                                   
 All Money Market      12.914       0.43      3,043.818  1,011
 Funds                                                   
 All Municipal Bond    0.778        0.17      469.979    1,350
 Funds                                                   
 
 (Reporting by Jennifer Ablan; editing by Phil Berlowitz and
Leslie Adler)
  
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