| NEW YORK, April 13
NEW YORK, April 13 Investors pulled more money
out of equity funds in the latest week than any other week this
year, and left high-yield bond funds for the first time in 19
weeks, as euro zone concerns reemerged and a weak U.S. jobs
report stifled risk appetite, EPFR Global data showed.
Equity funds had total net redemptions of $9.26 billion in
the latest week, ended April 11, a year-to-date high, according
to Cameron Brandt, director of research for EPFR Global.
U.S. equity funds alone posted redemptions of $6.51 billion,
a 20-week high, while redemptions from European equity funds
were $1.19 billion.
Investors also fled risky bonds. High-yield "junk" bond
funds ended their 18-week run of inflows with redemptions of
$1.41 billion, while emerging market debt funds had their first
redemptions since early January - $99 million - Brandt said.
Emerging market equity funds had redemptions of $859
million, which he said was the biggest weekly outflow since
News of a disappointing debt auction in Spain, weak U.S.
jobs growth and concerns about a slowdown in China dragged down
equities during a week in which the S&P 500 fell 2.1
"The tone of the market has changed in the past week and a
half from really overwhelming good news to somewhat mixed news,
and that means a higher level of risk," said Tim Ghriskey, chief
investment officer of Solaris Asset Management.
Bond funds gained a net $2 billion in the week, their
smallest weekly inflows of the year, Brandt said. U.S. bond
funds had $1.9 billion of the total inflows.
"Bonds are overvalued -- they're not cheap by any measure,"
said Kenny Landgraf, head of Kenjol Capital Management.
Money-market funds had redemptions of $1.7 billion, an
improvement from outflows of $14.73 billion the previous week.
CHINA AND SECTOR-SPECIFIC FUNDS
China equity funds had redemptions of $243 million, the
biggest outflows among the BRIC nations. A decline in crude oil
imports in the country stoked concerns about slowing growth.
"The slowdown has been a bit more pronounced than
expectations," said Ghriskey of Solaris.
All sector-specific funds had outflows, with commodities
posting the highest redemptions, $623 million, compared with
inflows of $247 million in the previous week.