May 2, 2019 / 9:21 PM / 5 months ago

UPDATE 1-U.S.-based investment-grade corporate bond funds see 14th week of inflows

 (Adds quotes from head of research services at Lipper, table)
    By Jennifer Ablan
    May 2 (Reuters) - Investors gravitated toward the
higher-quality spectrum of the credit markets this week, as
U.S.-based investment-grade corporate bond funds attracted about
$374.5 million in net cash, their 14th consecutive week of
    According to Refinitiv's Lipper research data on Thursday,
investors sent roughly $16 billion in net cash to U.S.
money-market funds for the week ended Wednesday, following their
previous week's inflows of $4.26 billion.
    U.S.-based equity mutual funds, however, had another rough
    Investors pulled $5.5 billion from U.S.-based equity mutual
funds in the week ended Wednesday, Lipper data show, while
equity exchange-traded funds garnered $3.7 billion.
    "Despite the S&P 500 setting three record closes during the
fund-flows week, investors remained on the equity sidelines
after learning about disappointing Q1 revenue growth from
stalwart Alphabet," said Tom Roseen, head of research services
at Lipper. 
    "There was a split once again between mom-and-pop investors
and authorized participants. Equity mutual funds witnessed
outflows of $5.5 billion, while equity ETFs took in $3.7 billion
during the fund flows week."
    U.S.-based taxable exchange-traded funds posted cash
withdrawals for the week, with investors withdrawing $700
million in net cash. 
    "While investors were keeping a keen eye on the FOMC 
(Federal Open Market Committee) meeting, which concluded on
Wednesday on a more hawkish note than some anticipated,
taxable-fixed income mutual funds took in small amounts of net
new money - $348 million-plus, with ETF investors ...
withdrawing $700 million," Roseen said. 
    "Interestingly, though, both investors types were net
purchasers of municipal bond funds, injecting $877 million into
conventional open-end funds and $314 million for ETFs,
respectively," Roseen said. "For the week, the average municipal
bond fund returned 0.51 percent."
    The following is a broad breakdown of the flows for the
week, including mutual funds and exchange-traded funds:
 Sector                Flow Chg  % Assets  Assets ($Bil)  Count
 All Equity Funds      -1.788    -0.02     7,305.647      11,791
 Domestic Equities     -1.235    -0.02     5,200.231      8,390
 Non-Domestic          -0.553    -0.03     2,105.415      3,401
 All Taxable Bond      -0.352    -0.01     2,870.719      5,829
 All Money Market      15.984    0.55      2,938.942      1,004
 All Municipal Bond    1.191     0.26      457.828        1,344
 (Reporting by Jennifer Ablan
Editing by James Dalgleish)
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