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United Kingdom

Jennifer Ablan

U.S.-based equity funds post $12.27 billion outflows amid U.S.-China trade tensions

16 May 2019

Investors rattled by lingering trade tensions between the United States and China pulled $12.27 billion from U.S.-based equity funds in the week ended Wednesday, according to data released by Refinitiv's Lipper research service on Thursday.

UPDATE 2-U.S.-based equity funds post $12.27 bln outflows amid U.S.-China trade tensions

16 May 2019

(Adds inflows into U.S.-based government-Treasury bond funds; table) By Jennifer Ablan May 16 Investors rattled by lingering trade tensions between the United States and China pulled $12.27 billion from U.S.-based equity funds in the week ended Wednesday, according to data released by Refinitiv's Lipper research service on Thursday. It was the category's fourth consecutive week of outflows, Lipper data showed. Investors sought shelter from plummeting equity markets earlier in the week and moved money into money market and Treasury funds. U.S.-based money market funds attracted $14.49 billion in the week ended Wednesday, their fourth consecutive week of inflows, Lipper said. U.S.-based government-Treasury bond funds attracted $1.55 billion in the week ended Wednesday, Lipper said. On Monday, the S&P 500 suffered its steepest drop since early January, after Beijing said it would raise tariffs on American-made goods in retaliation for a similar move from the United States. Stocks have since rebounded from that plunge but there are signs that investors continue to worry about the costs of the prolonged trade dispute. Pat Keon, senior research analyst at Lipper, noted that for the second week in a row equity, equity exchange-traded funds (ETFs) had net outflows right around $10 billion. "This represents the 2nd and 3rd highest of the year for the group and highest since January 30 with investors withdrawing about $14.6 billion," Keon said. For the last two weeks, the SPDR S&P 500 ETF has accounted for over half of the total weekly net outflows for equity ETFs, Keon said. "This coupled with the large net inflows into money markets over the last two weeks indicates to me that there is a lot of uncertainty in the market, driven mainly by the U.S-China trade tensions," he said. High-yield "junk" bond funds correlate more with equity than they do with investment-grade taxable debt, Keon noted. U.S.-based high-yield funds posted $2.57 billion in cash withdrawals in the week ended Wednesday, their second straight week of outflows. "Not surprising to see the large net outflows from them as it aligns with market performance and the negative flows from equity funds," Keon said. "The high-yield results were the main reason that taxable bond mutual funds suffered a weekly net outflow this week of $263 million, which broke a streak of 17 straight weekly net inflows," he added. The following is a broad breakdown of the flows for the week, including mutual funds and exchange-traded funds: Sector Flow Chg % Assets Count ($Bil) Assets ($Bil) All Equity Funds -12.271 -0.17 7,108.393 11,798 Domestic Equities -9.501 -0.19 5,074.720 8,386 Non-Domestic Equities -2.769 -0.13 2,033.673 3,412 All Taxable Bond Funds 0.434 0.02 2,868.079 5,815 All Money Market Funds 14.489 0.49 2,975.044 1,004 All Municipal Bond 1.272 0.28 463.544 1,336 Funds (Reporting by Jennifer Ablan Editing by James Dalgleish and Alistair Bell)

Big U.S. hedge funds regain ardor for FAANGs in first quarter: filings

15 May 2019

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U.S. growth would have contracted without trillions in government, consumer debt: Gundlach

14 May 2019

U.S. growth appears to be based "exclusively" on government, corporate and mortgage debt and the economy would have contracted if the United States had not added trillions in debt, Jeffrey Gundlach, chief executive of DoubleLine Capital, said in an investor webcast on Tuesday.

UPDATE 2-U.S.-based equity funds post $12.7 bln of cash withdrawals -Lipper

09 May 2019

(Adds flow data for investment-grade and money market funds, table) By Jennifer Ablan May 9 The lingering U.S.-China trade war deterred investors from stock markets as U.S.-based equity funds posted over $12.7 billion of cash withdrawals in the week ended May 8, their third consecutive week of outflows, according to Refinitiv's Lipper research service data on Thursday. U.S.-based domestic equity funds, or funds based in the United States which invest at least 75 percent of their assets in domestic securities, posted more than $12.8 billion of outflows, according to Lipper data, also their third straight week of net cash withdrawals. The risk-off mood spilled over to the lower-quality spectrum of the U.S. credit markets with U.S.-based high-yield junk bond funds posting $212 million of outflows in the week ended Wednesday, Lipper said. "Equity funds with $12.7 billion of cash withdrawals suffered their worst flows week since Jan. 30, 2019, with minus$13.6 billion in outflows," said Pat Keon, senior research analyst at Lipper. "It was the third straight weekly net outflow for equity funds, so they have been trending down. This result was more in line with the week’s market losses - the Dow, S&P 500, and NASDAQ were all down over 1% for the fund flows trading - than past week’s," Keon said. Of note, the lion’s share of the net outflows came from just two exchange-traded funds (ETFs), he said, noting the SPDR S&P 500 ETF and Invesco QQQ Trust, Keon said. The SPDR S&P 500 ETF posted $7.3 billion of cash withdrawals and Invesco QQQ Trust posted $2.5 billion of outflows, Keon said. The net inflows into fixed-income funds - taxable bond funds with over $1.8 billion and municipal-debt funds with $1.5 billion - "can possibly be seen as a combination of the continuation of long-term trends as well as a safe haven play to get away from the volatility of equities," Keon said. U.S.-based investment-grade corporate bond funds attracted more than $3.3 billion in the week ended Wednesday, extending their weekly inflow streak since late January, Lipper said. Core Plus Bond Funds and Ultra Short Obligation Funds carried the day for taxable bond funds, with inflows of more than $1 billion and over $621 million, respectively. It was the 16th net inflow in 17 weeks for both of these peer groups, Keon noted. For their part, U.S.-based money market funds attracted about $22 billion of inflows in the week ended May 8, their third consecutive week of net new cash, Lipper said. "The net inflows into money markets could be investors parking assets until the trade tension between the U.S. and China and the volatility in the markets settles down," Keon said. The following is a broad breakdown of the flows for the week, including mutual funds and exchange-traded funds: Sector Flow % Assets ($Bil) Count Chg Assets ($Bil) All Equity Funds -12.705 -0.17 7,194.726 11,794 Domestic Equities -12.806 -0.25 5,128.258 8,380 Non-Domestic Equities 0.101 0.00 2,066.468 3,414 All Taxable Bond Funds 1.830 0.06 2,865.493 5,821 All Money Market Funds 21.985 0.75 2,960.355 1,004 All Municipal Bond 1.502 0.33 460.801 1,336 Funds (Reporting by Jennifer Ablan; Editing by David Gregorio and Susan Thomas)

Warren Buffett says U.S.-China trade war would be 'bad for the whole world'

07 May 2019

Warren Buffett said on Monday that a trade war between the United States and China would be "bad for the whole world."

Gundlach recommends buying rate volatility on long maturity U.S. Treasuries: Sohn

06 May 2019

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Greenlight's David Einhorn pitches long on AerCap, short on GATX at Sohn Conference

06 May 2019

David Einhorn, president of Greenlight Capital, at the Sohn Investment Conference on Monday said his firm is positive on airplane leasing company AerCap Holdings and negative on railcar leasing company GATX Corp.

Warren Buffett says trade war would be 'bad for the whole world'

06 May 2019

May 6 Warren Buffett said on Monday that a trade war between the United States and China would be "bad for the whole world."

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

02 May 2019

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 inflows.

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