August 15, 2019 / 7:59 PM / 3 days ago

UPDATE 2-U.S. Treasury, investment-grade and money funds attract $16.6 bln in risk-averse week

 (Adds table)
    By Jennifer Ablan
    Aug 15 (Reuters) - Investors rushed into their favorite
safe-haven assets such as Treasuries, investment-grade corporate
bonds and money market funds in the latest week, which was
marked by rising tensions over the U.S.-China trade war and the
global economic slowdown.
    U.S.-based money-market funds attracted roughly $10.6
billion in the week ended Wednesday, the second straight week of
inflows, according to Refinitiv's Lipper. U.S.-based
investment-grade corporate bond funds attracted more than $4
billion and U.S.-based government and Treasury funds attracted
more than $2 billion, Lipper data showed. 
    Stocks plunged on Wednesday in the Dow Jones Industrial
Average's worst performance of 2019 - 800.49 points or 3.05% to
25,479.42 after the bond market flashed a worrying signal about
the U.S. economy.    
    "Money went into safe havens, which is what you would expect
after yesterday, but this is the continuation of long-term
trends," said Pat Keon, senior research analyst at Lipper.
    Taxable bond funds took in net new money totaling more than
$5.8 billion for the 11th week in 12, Keon said. Equity mutual
funds extended their losing streak to 26 straight net outflows
at negative $4.6 billion, he said.
    "Equity ETFs, an asset group where we’ve seen some
week-to-week variation between net inflows and net outflows did
the opposite of what you would expect from the markets and had
net inflows of $7.7 billion," Keon said. The SPDR S&P 500 ETF
Trust and the Invesco QQQ Trust Series 1 "paved
the way here" with net inflows of $5.9 billion and $2.9 billion,
respectively, he said.
    All told, Keon said "What stands out to me is I don’t see
any reaction to yesterday's market turmoil in the flows results.
Specifically, I would have expected to see net outflows from
equity ETFs and maybe a larger net inflow into money markets."
    The following is a broad breakdown of the flows for the
week, including mutual funds and exchange-traded funds:
 Sector             Flow Chg     % Assets  Assets       Count
                    ($Bil)                 ($Bil)       
 All Equity Funds   3.101        0.04      6,958.321    11,726
 Domestic Equities  4.459        0.09      5,004.499    8,327
 Non-Domestic       -1.357       -0.07     1,953.822    3,399
 Equities                                               
 All Taxable Bond   5.756        0.19      2,986.518    5,839
 Funds                                                  
 All Money Market   10.587       0.33      3,229.220    1,014
 Funds                                                  
 All Municipal      1.625        0.33      493.511      1,343
 Bond Funds                                             
 
 (Reporting by Jennifer Ablan; Editing by Grant McCool and Chris
Reese)
  
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