| June 7
June 7 Investors pulled a record $12.53 billion
from bond funds tracked by EPFR Global in the week ended
Wednesday as concerns lingered that the Federal Reserve will
reduce its bond-buying program in coming months.
Outflows from U.S. bond funds accounted for $8.77 billion of
total outflows for the week ended June 5, the largest U.S. funds
outflow since EPFR started tracking this data in August 2001.
High-yield bond funds also showed a record $6.6 billion in
redemptions, and emerging market bond funds had outflows of
U.S. bond prices have fallen, boosting yields, as investors
worried the Federal Reserve will reduce quantitative easing, in
which the U.S. central bank has been purchasing $85 billion in
Treasuries and agency mortgage securities each month.
Fed officials, who enacted the program to decrease long-term
borrowing costs and boost hiring, have discussed the possibility
of cutting monthly purchases later in the year.
EPFR said investors also withdrew money from stocks funds
focused on China in the latest week, while putting less money
into Japan equity funds. The $834 million pulled from China
equity funds was the most since January 2008.
Inflows to Japan equity funds hit an 18-week low as the
Nikkei 225 average fell and investors worried about the
effectiveness of the Japanese government's stimulus policies.
Japan's central bank said on April 4 that it would fight
deflation by injecting $1.4 trillion into the country's economy
in less than two years.
Money market funds closed a volatile week with inflows of
$3.87 billion. Floating-rate funds, meanwhile, were the only
major bond fund group to see inflows, taking in $1.06 billion to
bring their inflow streak to 50 straight weeks.
EPFR Global Research Director Cameron Brandt said the data
was consistent with expectations that the Fed's stimulus will
begin to wind down in the second half of the year.
Thomson Reuters' Lipper service released data Thursday that
showed investors in funds based in the United States pulled a
record $4.63 billion from high-yield bonds in the week ended
EPFR Global tracks 49,000 mutual funds worldwide that
include ETFs and alternative funds and make up $20.5 trillion in
assets under management. Lipper tracks 261,000 funds around the
world with $52 trillion in total assets.