June 13, 2019 / 8:18 PM / a year ago

UPDATE 1-Risk appetite emerges as U.S.-based equity funds attract $4.4 bln

 (Adds quotes from head of research services at Lipper, table;
    By Jennifer Ablan
    June 13 (Reuters) - U.S.-based equity funds attracted $4.4
billion of inflows in the week ended Wednesday, following two
consecutive weeks of cash outflows totaling $34 billion,
according to Refinitiv's Lipper, as the United States and Mexico
struck a deal to avert tariffs. 
    U.S.-based high-yield junk bond funds - which move in
sympathy with equity flows - attracted more than $1.7 billion of
inflows in the week ended Wednesday, also following two straight
weeks of cash withdrawals, Lipper said.
    Tom Roseen, head of research services at Lipper, said it was
"definitely a risk-on week" with net new money into corporate
investment-grade bond funds of more than $4 billion.
    "Interestingly, though, we saw retail investors being net
redeemers of equity funds at negative $4.9 billion, while
authorized participants were net purchasers of equity ETFs at
plus $9.4 billion. So once again it was a tale of two cities,"
Roseen said. 
    Mom-and-pop investors "appear to be content sitting on the
sidelines until the trade deals are completed, parking cash into
the money market funds of more than $12.9 billion," he said.
    Mom-and-pop investors are also putting money into select
bond fund classifications: corporate investment-grade debt funds
of plus-$1.2 billion and municipal bond funds of plus-$887
million, their 23rd consecutive week of net inflows.
    The following is a broad breakdown of the flows for the
week, including mutual funds and exchange-traded funds:  
 Sector                Flow Change  Pct of    Assets     Count
                       ($ blns)     Assets    ($ blns)   
 All Equity Funds      4.434        0.06      7,145.669  11,820
 Domestic Equities     7.233        0.14      5,095.172  8,414
 Non-Domestic          -2.799       -0.14     2,050.497  3,406
 All Taxable Bond      7.193        0.25      2,914.588  5,840
 All Money Market      12.914       0.43      3,043.818  1,011
 All Municipal Bond    0.778        0.17      469.979    1,350
 (Reporting by Jennifer Ablan; editing by Phil Berlowitz and
Leslie Adler)
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