(Adds details on additional flows, analyst comment, table)
By Sam Forgione
NEW YORK, Aug 28 Investors in U.S.-based funds
poured $6.1 billion into stock funds and $672 million into
high-yield bond funds in the week ended Aug. 27 on continued
appetite for risk assets, data from Thomson Reuters' Lipper
service showed on Thursday.
The inflows into stock and high-yield bond funds, while down
from the previous week, marked the third straight week of new
demand for both fund categories. Taxable bond funds overall
attracted $3 billion, also marking their third straight week of
Stock mutual funds, which are commonly purchased by retail
investors, attracted $415 million. Stock exchange-traded funds,
which are thought to represent the behavior of institutional
investors, attracted $5.7 billion.
The inflows showed investors continuing to inch back into
riskier assets such as stocks and lower-rated junk bonds after
hefty withdrawals from funds that hold those assets over the
first week of August.
"Risk appetite has gradually come back," said Barry Fennell,
senior research analyst at Lipper. He cited continued low
interest rates and strong U.S. economic data over the period.
Emerging market equity funds attracted $951 million in new
cash, marking their ninth straight week of inflows. European
stock funds posted about $179 million in outflows, despite
speculation for more European Central Bank stimulus.
Fennell of Lipper said geopolitical concerns surrounding
Ukraine and Russia hindered overall demand for European
Risk assets rose over the period. The U.S. benchmark S&P 500
stock index rose 0.7 percent and closed above the 2,000
milestone for the first time. The Barclays U.S. Corporate High
Yield Index rose a slight 0.2 percent.
Funds that hold floating-rate loans, which are protected
from rising interest rates, posted $298 million in outflows,
marking their seventh straight week of withdrawals. Analysts
have cited concerns of overvaluation as a cause for the
Investors still parked $13.3 billion into low-risk money
market funds, marking their biggest inflows in seven weeks and
their fourth straight week of new money.
Investors showed less appetite for safe-haven gold.
Commodities and precious metals funds, which mainly invest in
gold futures, posted about $229 million in outflows, marking
their biggest outflows since late April.
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 Pct of Assets Count
($ blns) Assets ($ blns)
All Equity Funds 6.102 0.14 4,271.165 10,912
Domestic Equities 3.171 0.10 3,154.246 7,960
Non-Domestic Equities 2.931 0.27 1,116.919 2,952
All Taxable Bond Funds 3.009 0.16 1,851.447 5,546
All Money Market Funds 13.345 0.58 2,309.740 1,308
All Municipal Bond Funds 0.446 0.15 298.461 1,430
(Reporting by Sam Forgione; Editing by Lisa Shumaker)