August 30, 2018 / 10:21 PM / 22 days ago

UPDATE 1-U.S. fund investors favor stocks, emerging markets in week -Lipper

 (Adds data on funds, table, analyst quote, byline)
    By Trevor Hunnicutt
    NEW YORK, Aug 30 (Reuters) - Investors overcame fears over a
potential trade war and added money to domestic stocks and
emerging markets in the latest week, Lipper data showed on
Thursday.
    U.S.-based stock mutual funds and exchange-traded funds
(ETFs) netted $2 billion in the seven days through Wednesday,
the most cash in four weeks, according to the data.
    Emerging markets stock funds pulled in $968 million and debt
funds focused on that region attracted $250 million, the most in
six weeks, Lipper said.
    Investors' apparent willingness to take on risk comes even
as markets wrestle with ongoing U.S. trade negotiations with
Canada and unresolved trade issues with China. Yet, during the
week, the U.S. also struck a deal in principle over trade with
Mexico.
    Emerging markets are being hit by concerns over trade and
the consequences of a strong dollar that have helped to weaken
countries from Turkey to Argentina, which owe debt that is
denominated in dollars.
    Tom Roseen, head of research services for Thomson Reuters'
Lipper unit, said the U.S. stock market has three things going
for it: an accommodative Federal Reserve, strong corporate
profits and a relatively optimistic outlook on the potential for
trade conflict to be resolved.
    Each of those factors is making investors a bit more willing
to buy the dip in emerging markets.
    "We looked at China as being the engine of growth and I
think we'll see them return to being the engine of growth," said
Roseen.
    "If these trade issues get resolved it could be a boon for
the whole world."
    The following is a breakdown of the flows for the week,
including mutual funds and ETFs:
 Sector                    Flow      Pct of    Assets     Count
                           Change    Assets    ($ blns)   
                           ($ blns)                       
 All Equity Funds          1.980     0.03      7,653.418  12,291
 -Domestic Equities        1.992     0.04      5,447.856  8,746
 -Non-Domestic Equities    -0.012    -0.00     2,205.562  3,545
 All Taxable Bond Funds    2.192     0.08      2,825.496  6,080
 All Money Market Funds    -6.388    -0.23     2,735.018  1,037
 All Municipal Bond Funds  0.212     0.05      430.513    1,434
 
 (Reporting by Trevor Hunnicutt; editing by Phil Berlowitz)
  
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