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UPDATE 1-U.S. fund investors snap up international stocks -Lipper
November 9, 2017 / 11:26 PM / a month ago

UPDATE 1-U.S. fund investors snap up international stocks -Lipper

 (Adds details on mutual fund and ETFs, analyst quote, table,
byline)
    By Trevor Hunnicutt
    NEW YORK, Nov 9 (Reuters) - U.S. investors favored
international stock markets, pushing $4.1 billion into equity
funds focused abroad during the most recent week, dodging risks
at home, Lipper data showed on Thursday.
    Domestic stocks funds took in just $631 million during the
week ended November 8, Lipper said. The data covers mutual funds
and exchange-traded funds (ETFs) based in the United States.
    The small haul for domestic stocks comes as investors
question whether competing Republican proposals to change the
U.S. tax code will be merged into a plan that can gain
congressional approval this year.
    A corporate tax cut would boost profits, but Senate
Republicans are unveiling a proposal that differs markedly from
legislation detailed by their counterparts in the House of
Representatives.
    Non-domestic funds have pulled in $149 billion this year,
compared to their domestic counterparts, which have recorded
outflows of $13 billion. 
    Cameron Brandt, director of research at EPFR Global, said
the record-setting inflows into global-focused funds are less an
endorsement of risk-taking than a demonstration of the "anxiety"
investors have about U.S. markets.
    "It's a sign that they are uncertain about the near-term
economic outlook," he said.
    The flows may also constitute an endorsement of
faster-growing developed markets abroad.
    U.S.-based stock funds that invest in Japan took in $758
million, the most since March 2015. European stock fund inflows
of $317 million were the biggest since July.
    "The market is doing well, the yen is getting weaker and
investors are seeing that," said Tom Roseen, head of research
services for Thomson Reuters' Lipper research unit.
    "The pedal is to the metal for a lot of investors."
    In bond land, U.S.-based corporate investment-grade bond
funds attracted $1.3 billion over the weekly period, the
sector's 8th straight week of inflows, Lipper said. 
    The following is a breakdown of the flows for the week,
including mutual funds and ETFs:
 Sector                    Flow Chg  % Assets  Assets     Count
                           ($blns)             ($blns)    
 All Equity Funds          4.682     0.07      6,310.139  12,132
 Domestic Equities         0.631     0.01      4,251.168  8,643
 Non-Domestic Equities     4.052     0.20      2,058.971  3,489
 All Taxable Bond Funds    1.587     0.06      2,602.362  6,037
 All Money Market Funds    10.761    0.42      2,590.239  1,048
 All Municipal Bond Funds  0.463     0.12      401.908    1,476
 
 (Reporting by Trevor Hunnicutt; Editing by Jennifer Ablan)
  

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