November 20, 2015 / 12:01 AM / 5 years ago

UPDATE 1-Mutual fund investors drive money out of U.S. stock funds -Lipper

(New throughout, recasts headline, adds context and analyst
quote)
    By Trevor Hunnicutt
    NEW YORK, Nov 19 (Reuters) - Stock funds posted $2.2 billion
in outflows during the week that ended Nov. 18, Lipper data
showed Thursday, marking a second consecutive week of
skittishness by mutual fund investors.
    Positive flows into ETFs overall - $1.0 billion into stocks
and $1.4 billion into bonds - were outweighed by strong mutual
fund withdrawals as the spotlight focused on the potential for a
December interest rate hike by the U.S. Federal Reserve.
    The outflows extended both to domestic and international
equities.
    "Mutual funds were responsible for all of that," said Pat
Keon, a research analyst at Lipper. 
    During the same week, Lipper said money market funds posted
$20 billion in outflows, marking their worst result since April.
The movement was driven by institutional investors, Keon said.
    But stock and bond categories were marked by a move by
investors toward quality and away from risk.
    ETF investors lifted taxable bond funds to net inflows of 
$427 million during the weekly period, according to Lipper.
    Lower-credit funds continued to suffer, with high-yield bond
funds recording $1.4 billion in outflows during the week, their
second straight week of withdrawals. The funds had posted a
massive $9.6 billion haul of new cash during the five weeks that
ended Nov 4, according to Lipper data.
    The fund research service said emerging-markets stock funds
recorded their third straight week of outflows during the latest
weekly period. Such funds have seen $1.6 billion in cash
withdrawals since the week that ended Nov 4.
    The funds had gathered money during each weekly period
measured by Lipper in October, but reversed course amid negative
performance and fears that tightening U.S. monetary policy might
hobble indebted countries.
    Investment-grade corporate debt funds took in nearly $1
billion during the week, while funds invested in U.S. Treasuries
took in $716 million, according to Lipper.
    Precious metals commodities funds - a classic hedge against
rising inflation - attracted their first inflows in four weeks.
The funds took in $116 million during the weekly period, Lipper
said. And inflation-protected bond funds attracted $37 million
during the week after seeing outflows the week before that.
    The 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 ($Bil)  % Assets  Assets     Count
                                               ($Bil)     
 All Equity Funds   -2.244           -0.04     5,252.409  11,901
 Domestic Equities  -1.152           -0.03     3,711.363  8,507
 Non-Domestic       -1.092           -0.07     1,541.046  3,394
 Equities                                                 
 All Taxable Bond   0.427            0.02      2,211.310  6,080
 Funds                                                    
 All Money Market   -20.151          -0.84     2,368.182  1,207
 Funds                                                    
 All Municipal      0.385            0.11      351.534    1,506
 Bond Funds                                               
 
 (Reporting by Trevor Hunnicutt; Editing by Jennifer Ablan and
Christian Plumb)
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