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UPDATE 1-U.S.-based stock funds attract $9.9 bln in latest week - Lipper
August 21, 2014 / 10:20 PM / 3 years ago

UPDATE 1-U.S.-based stock funds attract $9.9 bln in latest week - Lipper

(Adds additional flows, analyst comment, table)
    By Sam Forgione
    NEW YORK, Aug 21 (Reuters) - Risk appetite made a raging
comeback with investors pouring $2.2 billion into high-yield
junk bond funds and $9.9 billion into stock funds in the week
ended Aug. 20, data from Thomson Reuters' Lipper service showed
on Thursday. 
    The inflows into high-yield bond funds were the biggest
since last September and marked their second straight week of
new money, while the inflows into stock funds were the biggest
since June and also marked their second straight week of new
demand. 
    "Investors were willing to pick up more risk," said Jeff
Tjornehoj, head of Americas research at Lipper. He cited strong
U.S. housing data and some relief in Ukraine-Russia tensions as
having supported risk appetite over the weekly period. 
    The latest inflows into high-yield bond funds came after
investors pulled a record $7.1 billion from the funds earlier
this month on risk aversion and concerns the securities were 
overvalued.
    Stock mutual funds attracted over $1.3 billion, marking
their first inflows in four weeks, while stock exchange-traded
funds attracted $8.5 billion. Mutual funds are commonly
purchased by retail investors, while ETFs are thought to
represent the behavior of institutional investors. 
    Emerging market stock funds attracted $989 million in new
cash, marking their eighth straight week of inflows. European
equity funds posted $143.4 million in withdrawals, marking their
10th straight week of outflows. 
    Stock indexes worldwide rallied over the period. The
benchmark U.S. S&P 500 rose over 2 percent, while MSCI's
all-country equity index rose 1.6 percent.
MSCI's global emerging market equities index rose 1.3
percent.
    Taxable bond funds overall attracted $6.7 billion in net new
cash, marking their second straight week of inflows and their
biggest inflows since February. 
    Emerging market debt funds attracted $183 million, marking
their second straight week of inflows, while floating-rate loan
funds posted about $540 million in outflows, marking their sixth
straight week of withdrawals. 
    "Advisors are suggesting that their clients pull money out
of what might be considered a frothy market," Tjornehoj said on
the outflows from floating-rate loan funds. 
    Investors still parked $7.7 billion into low-risk money
market funds.
    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  Assets      Count
                      ($Bil)                 ($Bil)      
 All Equity Funds     9.873        0.24      4,229.364   10,902
 Domestic Equities    7.126        0.23      3,126.456   7,957
 Non-Domestic         2.747        0.25      1,102.908   2,945
 Equities                                                
 All Taxable Bond     6.701        0.37      1,846.255   5,553
 Funds                                                   
 All Money Market     7.684        0.34      2,296.694   1,311
 Funds                                                   
 All Municipal Bond   0.449        0.15      297.269     1,429
 Funds                                                   
 
 (Reporting by Sam Forgione; Editing by Chris Reese and Diane
Craft)

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