(Adds analyst quote, details on mutual funds and ETFs, table,
By Trevor Hunnicutt
NEW YORK, May 4 U.S.-based fund investors
underscored their preference for foreign stocks, reversing the
prior week's inflows for domestic equity funds and moving money
to Europe and emerging markets, Lipper data showed on Thursday.
Investors pulled $6.6 billion from U.S.-based stock funds
that invest at home during the week ended May 3, marking their
fourth week of outflows in the last five, the research service
"Domestic equity is still slumping," said Pat Keon, senior
research analyst for Thomson Reuters Lipper, noting that U.S.
stocks seem over-bought. "The fund community seems to be going
outside the U.S. to look for growth."
By contrast, U.S.-based stock funds primarily invested
abroad attracted $3 billion in their seventh straight week
drawing in new money, Lipper said.
Voters head to the polls on Sunday in the French
presidential election runoff, but the chances for a euroskeptic
winner seemed to ebb when centrist candidate Emmanuel Macron led
in the first round on April 23.
European stock funds continued on their hot streak, reeling
in $833 million in their biggest haul since March. Emerging
market stocks pulled in $647 million in their 18th straight week
of inflows, while Japanese stock funds attracted $210 million,
their first inflows in four weeks, the data showed.
U.S.-based taxable bond funds pulled in $1.6 billion,
marking their seventh straight week of inflows, the data showed.
Loan-participation funds that invest in bonds that hike payouts
as rates rise attracted $190 million and continued an unbroken
streak of inflows this year.
Yet high-yield junk funds showed continued softness, posting
$386 million in withdrawals during the latest week. Junk bond
funds have recorded outflows in three of the last four weeks.
"The yield on high yield is just not high enough," said
Keon, "and the reward isn't enough for the risk."
Within sectors, investors favored energy and real estate,
while healthcare and utilities posted outflows.
The $223 million taken in by energy sector funds during the
week amounted to the best result since February and came before
crude oil prices plunged to five-month lows on Thursday.
The following is a broad breakdown of the flows for the
week, including mutual funds and exchange-traded funds:
Sector Flow Chg % Assets Assets Count
All Equity Funds -3.652 -0.06 5,833.757 11,507
Domestic Equities -6.644 -0.16 4,118.677 8,246
Non-Domestic Equities 2.992 0.18 1,715.080 3,261
All Taxable Bond Funds 1.593 0.07 2,381.357 5,804
All Money Market Funds -0.302 -0.01 2,212.531 997
All Municipal Bond Funds 0.128 0.03 376.620 1,389
(Reporting by Trevor Hunnicutt; Editing by Jennifer Ablan and