March 29, 2018 / 11:15 PM / 21 days ago

UPDATE 1-U.S. stock fund investors pull most cash since February meltdown -Lipper

 (Adds details on funds, analyst quote, table, byline)
    By Trevor Hunnicutt
    NEW YORK, March 29 (Reuters) - U.S. fund investors drained
the most cash from the stock market since early February's
market meltdown, dodging declines while making a tactical bet on
fallen technology companies, Lipper data released on Thursday
showed.
    More than $14 billion rolled out of the funds during the
week ended March 28, according to the research service, yet tech
sector funds pulled in $101 million as some investors appeared
to bet that the declines in Facebook Inc and some of its
peers were temporary.
    Tom Roseen, head of research services at Thomson Reuters'
Lipper unit, said the so-called FANG stocks - Facebook,
Amazon.com Inc, Netflix Inc and Google parent
Alphabet Inc - were "bloodied and black-eyed" this
week but the selling pressure made it a buying opportunity.
    U.S. President Donald Trump accused Amazon on Thursday of
not paying enough tax, taking advantage of the U.S. postal
system and putting small retailers out of business.
    The company's stock sank more than 6 percent over the past
week. Amazon declined to comment on Trump's tweet on Thursday.
    "These market darlings have had a strong ride for so long
and this mini-tech wreck or breather is kind of what we needed,"
said Roseen.
    
    INTERNATIONAL STOCKS PUNISHED
    During the latest week, U.S. investors also turned on
international stocks, which have been a popular place to sock
away gains from the domestic market. Non-domestic equity funds
recorded $340 million in withdrawals during their first week of
outflows this year.
    European stock funds posted $1.2 billion in withdrawals,
their fourth straight week of outflows, according to Lipper. The
euro zone's momentum has been losing pace, according to
Citigroup's economic surprise index for the currency bloc
, which is crouched near a two-year low.
    Japanese stock funds posted $638 million in withdrawals
during the week, the most since July, Lipper said.
    Both Japanese and European markets, which carry currency
risks for U.S. investors, are down over the last month.
    It was the second week of pressure for stock funds, which
posted $9.6 billion in withdrawals the week prior, according to
Lipper. Overall, the funds have attracted $55 billion this year.
    The following is a breakdown of the flows for the week,
including mutual funds and ETFs:
 Sector                    Flow Chg  % Assets  Assets     Count
                           ($blns)             ($blns)    
 All Equity Funds          -14.379   -0.21     6,753.743  12,195
 Domestic Equities         -14.039   -0.30     4,526.210  8,664
 Non-Domestic Equities     -0.340    -0.01     2,227.533  3,531
 All Taxable Bond Funds    0.121     0.00      2,701.840  6,072
 All Money Market Funds    2.370     0.09      2,696.273  1,042
 All Municipal Bond Funds  0.037     0.01      403.378    1,475
 
 (Reporting by Trevor Hunnicutt; Editing by Jennifer Ablan and
Richard Chang)
  
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