June 21, 2018 / 11:43 PM / 3 months ago

UPDATE 1-U.S.-based money market funds post $51 bln net outflows for week -Lipper

 (Adds analyst comment, table)
    By Jennifer Ablan
    NEW YORK, June 21 (Reuters) - U.S.-based money market funds
posted $51 billion of net outflows for the week ended Wednesday,
the largest cash withdrawal since 2011 and the seventh largest
ever, according to Lipper data on Thursday.
    The drawdown in money fund assets, which companies use as
alternatives to bank accounts to manage their cash, likely
stemmed from two factors: corporate tax receipts and investor
payment on Treasury supply, said Pat Keon, senior research
analyst at Thomson Reuters Lipper.
    Last week, corporations were sending cash to the government
ahead of a quarterly tax deadline. On June 15, the Treasury said
it received $26.0 billion in corporate taxes, compared with
$42.2 billion a year earlier.
    Moreover, the Treasury raised about $43 billion in new cash
as investors settled on what they bought at last week's Treasury
auctions, which included $68 billion worth of three-year,
10-year and 30-year debt.
    Meanwhile, U.S.-based equity funds posted $1.27 billion of
net outflows in the week ended Wednesday, marking the third
consecutive week of cash withdrawals, Lipper said.
    The majority of those outflows came from U.S.-based equity
exchange-traded funds, which posted net outflows of $5.8
billion. Conversely, U.S.-based equity mutual funds attracted
$4.6 billion of net new cash for the same period, according to
Lipper.
    Emerging-market funds saw another volatile week. Investors
pulled $4.36 billion of net cash from U.S.-based emerging market
equity funds and $452 million from U.S.-based emerging market
debt funds, according to Lipper data.
    
    The following is a breakdown of the flows for the week,
including mutual funds and ETFs:
 Sector               Flow Chg     % Assets  Assets       Count
                      ($bln)                 ($bln)       
 All Equity Funds     -1.267       -0.02     7,498.141    12,328
 Domestic Equities    0.932        0.02      5,266.503    8,773
 Non-Domestic         -2.199       -0.10     2,231.638    3,555
 Equities                                                 
 All Taxable Bond     0.094        0.00      2,781.568    6,078
 Funds                                                    
 All Money Market     -51.027      -1.87     2,675.107    1,039
 Funds                                                    
 All Municipal Bond   0.646        0.15      432.167      1,468
 Funds                                                    
 

 (Additional reporting by Richard Leong; Editing by James
Dalgleish and Rosalba O'Brien)
  
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