March 2, 2018 / 12:32 AM / 6 months ago

UPDATE 1-U.S.-based junk bond funds post 7th straight week of outflows

 (Adds quotes from head of research services at Thomson Reuters
Lipper, table)
    By Jennifer Ablan
    NEW YORK, March 1 (Reuters) - U.S.-based junk bond funds
posted $703 million of outflows for the week ended Wednesday,
their seventh straight week of cash withdrawals, Lipper data
showed on Thursday. 
    But higher up in the credit-quality spectrum, U.S.-based
investment-grade corporate bond funds attracted $1.37 billion in
new cash, a second consecutive week of inflows, Lipper added. 
    U.S.-based equity funds attracted $13.3 billion of net cash
for the week ended Wednesday, though the majority of those flows
went into U.S.-based exchange-traded funds, Lipper said. 
    U.S.-based equity ETFs attracted $13.6 billion of inflows,
while U.S.-based mutual funds posted $295 million of outflows,
Lipper said. Overall, U.S.-based domestic funds attracted $9.4
billion of inflows, after three straight weeks of cash
withdrawals. 
    "Investors appeared to be cautiously optimistic ahead of
Federal Reserve Chair Powell’s testimony to Congress but then
became spooked by his, what some people are calling, 'hawkish'
tone," said Tom Roseen, head of research services at Thomson
Reuters Lipper. 
    Jerome Powell gave his first testimony as the Fed chair
before Congress on Tuesday.
    "But from the flows into equity ETFs, we can see that many
investors are cheering the idea of a stronger economy and
perhaps rotating into those securities that benefit when rates
increase - banks and the like - and increasing economic
conditions," Roseen said.
    Roseen said while domestic ETFs took in money, conventional
domestic funds were net redeemers. The average retail investor
continued to shun large-cap stocks, while padding the coffers of
international equity funds.
    Indeed, U.S.-based international equities funds attracted
$4.2 billion of inflows for the week ended Wednesday, a ninth
consecutive week of inflows, according to Lipper data.
U.S.-based emerging markets equity funds attracted $1.5 billion
of inflows for the week ended Wednesday, their 10th consecutive
week of inflows, Lipper added. 
    U.S.-based European equity funds attracted $117 million for
the week ended Wednesday, their sixth straight week of inflows,
Lipper said.
    The following is a breakdown of the flows for the week,
including mutual funds and ETFs:
 Sector            Flow Chg     % Assets   Assets ($Bil)  Count
                   ($Bil)                                 
 All Equity Funds  13.307       0.19       6,865.407      12,162
 Domestic          9.371        0.20       4,672.779      8,662
 Equities                                                 
 Non-Domestic      3.936        0.18       2,192.629      3,500
 Equities                                                 
 All Taxable Bond  0.854        0.03       2,639.726      6,079
 Funds                                                    
 All Money Market  -7.140       -0.26      2,698.243      1,047
 Funds                                                    
 All Municipal     -0.591       -0.15      400.743        1,471
 Bond Funds                                               
 
 (Reporting by Jennifer Ablan
Editing by Lisa Shumaker and Leslie Adler)
  
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