March 11, 2016 / 12:18 AM / 4 years ago

UPDATE 1-Investors risk appetite grows for stock, junk funds -Lipper

(Adds details on mutual fund and ETF flows, byline)
    By Trevor Hunnicutt
    NEW YORK, March 10 (Reuters) - Investors showed renewed
appetite for risk in the past week, with U.S.-based taxable debt
funds taking in the most cash in a year and stock funds posting
net inflows for the first time in 2016, Lipper data released on
Thursday showed.
    U.S.-based stock funds attracted $4.6 billion in net new
cash during the week ended March 9, the data showed, breaking a
nine-week streak of outflows.
    Taxable bond mutual funds and exchange-traded funds in the
United States attracted $5.8 billion in net new cash, their
seventh straight week of inflows, Lipper said. Investment-grade
corporate debt funds took in $2.1 billion, while high-yield junk
bond funds took in $1.8 billion, their fourth straight week of
inflows.
    "The investor's willing to take on a little bit more risk,"
Lipper research analyst Pat Keon said. "There are signs that the
economy is continuing to grow strongly."
    A U.S. government report released in the week surveyed
showed jobs grew faster than expected. 
    The inflows were spread throughout most asset classes.
    U.S.-focused stock funds took in $3.4 billion in net new
money, while funds focused on international shares took in $1.1
billion, according to Lipper.
    Emerging markets stock funds took in $1.6 billion, the most
since April 2015, while the $5 million that moved into
China-focused stock funds ended a nine-week streak of net
outflows, the data showed.
    Funds focused on energy, financial, real estate and
technology also took in net new money during the week. The $208
million net inflow into tech funds was the first in 2016, Lipper
records show.
    International and global debt funds took in $81 million
during the week, their first net inflow since November.
    Treasury funds, which have mostly had inflows this year,
posted $326 million in net outflows, their second straight week
of withdrawals. But inflation-protected bond funds took in $541
million during the week.
    Precious-metals commodities funds, which like Treasury
securities are regarded as safe havens, attracted $423 million
in the week, their ninth straight week of net inflows.    
    Investors bypassed stocks in Japan and Europe, delivering
funds invested in both regions their sixth straight week of net
outflows. Japanese stock funds posted $645 million in net
withdrawals, while European stock funds bled $553 million,
Lipper said.
    Investors also added $2.4 billion in new cash to relatively
low risk money-market funds during the week, the fund research
service said.
    The following is a broad breakdown of the flows for the
week, including exchange-traded funds (in $ billions):
 Sector                    Flow Chg    % of     Assets    Count
                           ($ blns)   Assets   ($ blns)   
 All Equity Funds           4.574      0.09    4,911.957  12,000
 Domestic Equities          3.471      0.10    3,469.219  8,552
 Non-Domestic Equities      1.104      0.08    1,442.739  3,448
 All Taxable Bond Funds     5.763      0.27    2,154.762  6,035
 All Money Market Funds     2.366      0.10    2,430.179  1,190
 All Municipal Bond Funds   0.518      0.14     359.866   1,402
 
 (Reporting by Trevor Hunnicutt; Editing by Jennifer Ablan and
Richard Chang)
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