July 12, 2018 / 11:45 PM / a month ago

CORRECTED (OFFICIAL) -UPDATE 1-Investors pull $1.85 bln from U.S.-based equity funds -Lipper

 (Corrects data after Lipper revision on U.S.-based corporate
investment-grade bond funds in paragraph 9, corrects U.S.-based
taxable bond funds in table)
    By James Thorne
    NEW YORK, July 12 (Reuters) - Investors withdrew $1.85
billion from U.S.-based equity funds  in the week ended
Wednesday despite strong stock market performance during the
same period, according to Lipper data released on Thursday.
    The data showed $1.46 billion was withdrawn from U.S.-based
equity mutual funds and $387 million from U.S.-based equity
exchange traded funds in the latest week.
    This is the sixth straight week U.S. equity funds have
experienced cash withdrawals, Lipper data showed.
    In the run-up to second-quarter earnings, fund investors
"bet on the fact that the trade wars are going to get worse,"
said Tom Roseen, head of research services at Thomson Reuters
Lipper.
    The S&P 500 posted four straight days of gains before
slipping on Wednesday following reports of additional U.S.
tariffs on Chinese goods.
    Investors' risk aversion was evident in the demand seen for
safer U.S. government and money market funds. 
    U.S.-based government-Treasury bond funds attracted $494
million during the period, Lipper said. Fund investors deposited
$21 billion in U.S.-based money market funds, the largest net
deposit since early June.
    Some opportunistic buying also took place. U.S.-based
high-yield bond funds saw more demand than their
investment-grade counterparts, attracting $1.85 billion for the
week ended Wednesday, following three consecutive weeks of
outflows, according to Lipper data.
    Investors deposited $814 million into U.S.-based corporate
investment-grade bond funds during the period, continuing a
streak of weekly inflows since March, Lipper said.
    Outside of the United States, U.S.-based international
equity funds posted $549 million of cash withdrawals for the
week, the seventh consecutive week of outflows, according to
Lipper.
    U.S.-based emerging market equities took in about $148
million for the week, after four weeks of outflows, Lipper data
showed.
    The following is a breakdown of the flows for the week,
including mutual funds and ETFs: 
 Sector                Flow Chg       %        Assets     Count
                       ($Bil)         Assets   ($Bil)     
 All Equity Funds      -1.845         -0.03    7,424.697  12,269
 Domestic Equities     -0.534         -0.01    5,231.917  8,732
 Non-Domestic          -1.311         -0.06    2,192.780  3,537
 Equities                                                 
 All Taxable Bond      3.281          0.12     2,786.966  6,049
 Funds                                                    
 All Money Market      21.310         0.93     2,317.829  999
 Funds                                                    
 All Municipal Bond    0.651          0.15     435.052    1,459
 Funds                                                    
 
 (Reporting by James Thorne; Editing by Diane Craft)
  
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