November 28, 2018 / 5:42 PM / in 17 days

U.S. retail investors still smarting from bond fund losses

    By Trevor Hunnicutt
    NEW YORK, Nov 28 (Reuters) - U.S. fund investors pulled the
most cash out of bonds in three weeks during the latest
seven-day period, according to Investment Company Institute
(ICI) data on Wednesday that revealed increased concern by
retail investors.
    Mutual funds, heavily used by retail investors, reported a
22nd straight week of withdrawals as $17 billion flowed out in
the seven days through Nov. 20.
    Exchange-traded funds (ETFs), whose sales are traditionally
driven more by institutional investors, attracted $10 billion,
the trade group said.
    Including both mutual funds and ETFs, U.S.-based bond funds
posted $3.8 billion withdrawals while $354 million fled stock
funds, according to the ICI.
    Investors who use bonds as a stable source of income have
been reviewing statements showing negative returns this year.
The average U.S.-based bond fund is down 1.35 percent for the
year, according to Lipper data earlier this month.
    The U.S. Federal Reserve has pushed rates higher in an
effort to stanch inflation but the higher yields this year have
also eaten away at bond prices.
    In more recent weeks fears that corporate credit could
deteriorate - as the U.S. economy slows from strong growth rates
- has also walloped debt markets. 
    The following table shows estimated ICI flows for mutual
funds and ETFs (all figures in millions of dollars):
                  11/20   11/14    11/7    10/31  10/24/2018
 Equity            -354   3,970    -168    5,641       3,054
     Domestic      -855   2,679  -3,971    6,376       4,012
     World          501   1,291   3,802     -735        -958
 Hybrid          -2,476  -2,103  -2,878   -3,370      -2,214
 Bond            -3,798  -2,313     793  -18,605      -7,044
     Taxable     -3,220  -1,543   1,703  -17,409      -6,865
     Municipal     -578    -770    -909   -1,196        -179
 Commodity          -65     413     -72       43         344
 Total           -6,693     -34  -2,324  -16,290      -5,860
 
 (Reporting by Trevor Hunnicutt
Editing by Susan Thomas)
  
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below