January 10, 2019 / 10:20 PM / 2 months ago

UPDATE 2-U.S.-based stock funds draw $8.74 bln in latest week - Lipper

 (Adds $17 billion inflows into money market funds, table)
    By Jennifer Ablan
    NEW YORK, Jan 10 (Reuters) - Investors put money to work in
both U.S. stock and bond markets for the week ended Wednesday,
after soothing remarks by Federal Reserve Chair Jerome Powell
that low inflation would allow the U.S. central bank to be
"patient" in deciding whether to continue raising rates this
year.
    U.S.-based stock funds attracted about $8.74 billion in the
week ended Jan. 9, following the previous week's cash withdrawal
of $18.7 billion, according to data released Thursday by Lipper.
U.S.-based taxable bond funds attracted $8.4 billion in the week
ended Wednesday, following the previous week's cash outflows of
over $12.7 billion, according to Refinitiv's Lipper research
service.
    "It appeared to be 'risk-on' for the week," said Tom Roseen,
head of research services for Lipper. He noted that it was the
first week in 29 that equity mutual funds - excluding
exchange-traded funds (ETFs) - witnessed net inflows of over
$4.4 billion. That marked their largest weekly net inflows since
June 20, 2018, he said. 
    But Roseen said it was the seventh consecutive week that
taxable bond funds, excluding ETFs, witnessed net outflows,
handing back $926 million this past week. Taxable bond ETFs, for
their part, attracted roughly $9.35 billion for the same time
period, Lipper data show. 
    "Domestic equity funds - ex-ETFs - took in a little less
than $3.3 billion, witnessing their second weekly net inflows in
three while posting a 3.99 percent return on average for the
flows week," Roseen said. 
    Their non-domestic equity fund counterparts, posting a 4.08
percent return on average, witnessed their first weekly net
inflows since Sept. 19, 2018, said Roseen, noting more than $1.1
billion of inflows this past week.
    For the 15th week in a row, non-domestic equity ETFs
witnessed net inflows, with this past week attracting $3.6
billion, Roseen said. That was their largest weekly net inflows
since Jan. 31, 2018, he said.
    All told, safer money-market funds attracted over $17
billion in the week ended Wednesday, underscoring investors'
skittishness on financial markets given the recent volatility.
It was the sector's fifth consecutive week of cash inflows,
Lipper said.
    The following is a breakdown of the flows for the week,
including mutual funds and ETFs:
 Sector                Flow Chg    % Assets  Assets     Count
                       ($Bil)                ($Bil)     
 All Equity Funds      8.740       0.14      6,716.925  12,170
 Domestic Equities     4.019       0.09      4,758.740  8,642
 Non-Domestic          4.721       0.25      1,958.186  3,528
 Equities                                               
 All Taxable Bond      8.422       0.31      2,728.163  5,992
 Funds                                                  
 All Money Market      17.054      0.58      2,933.271  1,006
 Funds                                                  
 All Municipal Bond    1.554       0.36      429.854    1,414
 Funds                                                  
 
 (Reporting by Jennifer Ablan; Editing by Tom Brown and James
Dalgleish)
  
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