June 28, 2018 / 10:53 PM / 22 days ago

UPDATE 1-U.S.-based equity funds post $20 bln outflows, most since Feb. -Lipper

 (Adds analyst quotes, byline, table)
    By James Thorne
    NEW YORK, June 28 (Reuters) - Investors in U.S.-based equity
funds pulled $20 billion of cash in the week ended June 27, the
largest outflows since February, according to Lipper data on
Thursday, as concern over global trade tensions lingered. 
    Investors' lack of risk-taking was also displayed in the
credit markets. U.S.-based high-yield bonds, which move in
sympathy with equities, posted $1.1 billion of cash withdrawals
in the week ended June 27, in a second consecutive week of
outflows, Lipper said. 
    U.S.-based equity mutual funds posted $8 billion of outflows
in the week and U.S.-based equity exchange-traded funds posted
$12 billion of cash withdrawals for the same period.  
    Pat Keon, senior research analyst at Thomson Reuters Lipper,
said equity funds suffered their second-largest weekly net
outflow of the year, fourth straight weekly outflow, and the
sixth largest since Lipper began tracking the data in 1992.
    "I think this is a function of the uncertainty we see in the
markets caused by the trade tensions/potential trade war," Keon
said.
    The lion’s share of the outflows from equity funds for this
week of over $12 billion and the last four of more than $24.5
billion have come from equity exchange-traded funds, "which are
typically more responsive to current market events than mutual
funds," Keon said.    
    Investors sought shelter in higher-quality bond funds,
including money market, Treasury and investment-grade corporate
bond funds. U.S.-based money market funds attracted more than
$18 billion of new cash for the week, following two weeks of
withdrawals, Lipper said. 
    U.S.-based government-Treasury bond funds attracted $781
million, their fourth consecutive week of inflows, according to
Lipper data. U.S.-based corporate investment-grade bond funds
attract $1.5 billion of new cash for week, extending weekly
inflow streak since February, Lipper said.
    Outside of the United States,  U.S.-based international
equity funds posted $6 billion of cash withdrawals for the week,
their fifth consecutive week of outflows, according to Lipper. 
    U.S.-based emerging market equity funds posted about $1.8
billion in outflows for the week, their third consecutive week
of cash withdrawals, according to Lipper data.
    The following is a breakdown of the flows for the week,
including mutual funds and ETFs: 
 Sector             Flow Chg      %        Assets ($Bil)  Count
                    ($Bil)        Assets                  
 All Equity Funds   -20.020       -0.27    7,285.398      12,336
 Domestic Equities  -13.922       -0.26    5,109.242      8,783
 Non-Domestic       -6.098        -0.27    2,176.156      3,553
 Equities                                                 
 All Taxable Bond   0.510         0.02     2,778.024      6,081
 Funds                                                    
 All Money Market   18.188        0.68     2,693.039      1,040
 Funds                                                    
 All Municipal      0.421         0.10     432.697        1,459
 Bond Funds                                               
 
 (Reporting by James Thorne; Editing by Leslie Adler)
  
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