August 15, 2019 / 7:59 PM / 4 months 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
 All Taxable Bond   5.756        0.19      2,986.518    5,839
 All Money Market   10.587       0.33      3,229.220    1,014
 All Municipal      1.625        0.33      493.511      1,343
 Bond Funds                                             
 (Reporting by Jennifer Ablan; Editing by Grant McCool and Chris
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