October 18, 2018 / 11:53 PM / 10 months ago

UPDATE 1-U.S. fund investors pull most cash since June from stocks -Lipper

 (Adds details on funds, analyst quote, table)
    By Trevor Hunnicutt
    Oct 18 (Reuters) - Investors slammed U.S.-based stock funds
during the latest week, pulling $17.5 billion, the most cash
from such investments since June, according to Lipper data on
    The withdrawals came during a volatile week for markets as
minutes from the most recent Federal Reserve policy meeting
showed broad agreement on the need to raise borrowing costs
further, cementing investor concerns that had helped cause a
major sell-off the week before.
    Domestic stock mutual funds and exchange-traded funds (ETFs)
posted $18.2 billion in withdrawals, only marginally offset by
$648 million moving into equity funds focused abroad, according
to data from the research service that covers the seven days
through Oct. 17.
    Rising rates could draw money away from stocks and into
bonds. It could also crimp the economic growth that has plumped
corporate profits to record levels and enabled a near
decade-long rally.
    "There were people ducking for cover," said Tom Roseen, head
of research services at Lipper. "This is fast money - people
getting in and getting out."
    Also during the week, Japanese stock funds based in the
United States but invested primarily in Tokyo pulled in $1.2
billion, the most cash since 2013 and an endorsement of that
market's chances to rally.
    Despite a strong start to earnings season and the hope of
rising rates increasing bank profits from lending activity,
fast-money investors pulled $2.5 billion from financial sector
funds, the most on record.
    The following is a breakdown of the flows for the week,
including mutual funds and ETFs:
 Sector                    Flow Chg  % Assets  Assets     Count
                           ($blns)             ($blns)    
 All Equity Funds          -17.545   -0.24     7,212.618  12,217
 Domestic Equities         -18.193   -0.35     5,163.920  8,669
 Non-Domestic Equities     0.648     0.03      2,048.698  3,548
 All Taxable Bond Funds    -1.870    -0.07     2,765.150  6,042
 All Money Market Funds    -14.981   -0.54     2,745.148  1,039
 All Municipal Bond Funds  -0.642    -0.16     413.294    1,430
 (Reporting by Trevor Hunnicutt
Editing by Phil Berlowitz and Leslie Adler)
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