December 3, 2015 / 11:42 PM / 4 years ago

UPDATE 1-U.S. stock, bond mutual funds see 4th straight week of withdrawals - Lipper

(New throughout; adds data and analyst quote)
    By Trevor Hunnicutt
    NEW YORK, Dec 3 (Reuters) - Investors withdrew $6.6 billion
from U.S. stock and taxable-bond mutual funds during the week
that ended Dec. 2, Lipper data showed on Thursday, marking the
fourth straight week of outflows for those investments.
    Overall, stock funds posted $920 million in outflows during
the week, led by the mutual fund withdrawals, according to the
Lipper data, which also measures exchange-traded funds.
    "Retail investors threw the baby out with the bath water,"
said Tom Roseen, head of research services at Lipper. "People
are getting out of the way of a rate hike."
    Roseen said concern about the direction of U.S. Federal
Reserve policy, mixed economic data and geopolitical concerns
have weighed on retail investors.
    Those concerns also prompted a flight-to-quality move into
money-market funds. That category attracted $17.8 billion during
the week, marking the second consecutive week of inflows for the
low-risk investments, Lipper said.
    Stock ETFs, by contrast, took in $3.8 billion. The SPDR S&P
500 ETF took in about 71 percent of that amount, Lipper
said.
    "They're saying, we feel comfortable saying there might be a
Santa Claus rally here," Roseen said of ETF investors, referring
to a potential end-of-year run up in stock prices.
    Investors pulled $2.1 billion in cash out of U.S.-listed
taxable bond mutual funds and ETFs during the week that ended
Dec. 2, Lipper said.
    Treasury funds posted $1.3 billion in outflows during the
week, while high-yield corporate debt attracted $398 million of
inflows and broke a three-week streak of outflows. Higher-credit
investment-grade bond funds posted $547 million in outflows.
    Emerging-market stock funds extended their streak of
outflows to five straight weeks, posting $583 million in
withdrawals in the latest period.
    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  % Assets  Assets     Count
                           ($Bil)              ($Bil)     
 All Equity Funds          -0.920    -0.02     5,236.782  11,819
 Domestic Equities         -0.065    -0.00     3,705.334  8,449
 Non-Domestic Equities     -0.855    -0.06     1,531.448  3,370
 All Taxable Bond Funds    -2.090    -0.10     2,200.798  6,070
 All Money Market Funds    17.811    0.76      2,350.362  1,163
 All Municipal Bond Funds  0.364     0.10      355.059    1,504
 
 (Reporting by Trevor Hunnicutt; Editing by Jennifer Ablan and
Lisa Shumaker)
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