June 14, 2012 / 11:00 PM / 5 years ago

Institutional investors lead equity inflows -Lipper

By Daniel Bases	
    NEW YORK, June 14 (Reuters) - Institutional investors placed
big bets on equity funds in the week ended June 13 while retail
investors returned to the sector after three weeks of selling,
data from Thomson Reuters' Lipper service showed on Thursday.	
    Exchange traded funds pulled in a net $9.1 billion for the
week with two-thirds of the total new cash moving into the
large-cap State Street SPDR S&P 500 ETF. The $6.4
billion net inflows into the fund was the best weekly
performance since October 2008.	
    ETFs are anecdotally believed to represent the investment
behavior of institutional investors while mutual funds are
thought to represent the retail investor.	
    Excluding ETFS, retail investors broke a three-week outflow
streak and placed a net $643 million into equity mutual funds.	
    In the course of the reporting week, the U.S. benchmark
Standard & Poor's 500 stock index was essentially flat.
However, it captured a good portion of the best week of the year
on rumors, since confirmed, that Spain would ask for aid to prop
up its banking sector. 	
   Taxable bond funds also pulled in cash, representing somewhat
of a safe-haven play by investors unnerved by the Europe's
ongoing credit crisis and the potential turmoil from Greece's
elections on Sunday.	
    The parliamentary elections on Sunday have raised the
possibility that a new government could backtrack on a
commitment to austerity measures set forth under Greece's 130
billion euro international bailout package. 	
    Spanish benchmark bond yields rose above 7 percent on
Thursday after Moody's Investors Service cut the country's
credit rating by three notches to Baa3, pushing borrowing costs
to levels that had triggered full-scale bailouts for other euro
zone states.	
    Moody's said the aid plan for Spain's strained banks would
increase the country's debt burden. 	
    As Europe's credit problems head toward another crescendo
moment, money market funds, which typically act as a safe haven,
had net outflows of $11.7 billion.	
    Taxable bond funds pulled in $1.1 billion. Government
mortgage funds pulled in $748 million.	
    "That is a huge number for that sector and represents a
safety play for the retail investors," said Tom Roseen, head of
research services at Lipper.	
    Municipal bond funds maintained their inflow streak,
bringing in $365 million, down from the prior week's $593
million inflow.	
    One streak that had been in place for over a year was an
outflow from equity income mutual funds. Excluding ETFs, the
sector had an outflow of $229.3 million, its first negative week
since early May 2011. 	
    The weekly Lipper fund flow data is compiled from reports
issued by U.S.-domiciled mutual funds and exchange-traded funds.	
    The following is a broad breakdown of the flows for the
week, including exchange-traded funds (in $ billions):	
 Sector                    Flow Chg    %       Assets      Count
                           ($Bil)      Assets  ($Bil)      
 All Equity Funds          9.780       0.37    2,642.851   10,343
 Domestic Equities         8.946       0.44    2,019.659   7,747
 Non-Domestic Equities     0.833       0.13    623.191     2,596
 All Taxable Bond Funds    1.142       0.08    1,407.772   4,657
 All Money Market Funds    -11.678     -0.51   2,276.563   1,426
 All Municipal Bond Funds  0.365       0.12    299.092     1,358

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