LONDON/NEW YORK, Jan 21 Turmoil on financial
markets is expected to deepen layoffs and accelerate
acquisitions in the fund management industry.
LONDON/NEW YORK Turmoil on financial markets is expected to deepen layoffs and accelerate acquisitions in the fund management industry.
NEW YORK LJM Partners Ltd on Friday filed a lawsuit against unnamed parties it holds responsible for hundreds of millions of dollars it lost after last year's jump in stock market volatility that effectively put the fund manager out of business.
SOMERSET, N.J./SAN FRANCISCO "Patience" is the new mantra at the Federal Reserve, less than two weeks ahead of the U.S. central bank's first policy meeting of the new year, as officials leave little doubt they want to stop raising interest rates - at least for a while.
SOMERSET, N.J., Jan 18 The U.S. Federal Reserve
must be patient and guided by data when considering whether to
raise interest rates, New York Fed President John Williams said
on Friday, in remarks reinforcing the central bank's commitment
to a wait-and-see approach.
(Adds quotes, details on investment flows, byline)
By Trevor Hunnicutt
NEW YORK, Jan 17 U.S. fund investors charged
into high-yield "junk" bonds during the latest week, pouring in
$3.3 billion, the most cash flowing into that market since late
2016, Lipper said on Thursday, boosted by soothing words by
Federal Reserve Chairman Jerome Powell.
Underscoring investors' appetite for some risk-taking,
investors pulled $15 billion net cash from U.S.-based money
market funds, according to the Refinitiv research service. For
their part, U.S.-based equity mutual funds - which exclude
exchange-traded funds - posted inflows of $4.8 billion, Lipper
"From this week’s results, it appears that fund investors
are encouraged by what they’ve seen and heard from the equity
markets, the Fed and economic data, and are willing to take on
more risk," said Pat Keon, senior research analyst at Lipper.
Last week, Powell reiterated that the Fed plans to evaluate
the health of the economy before moving ahead with any new
interest rate increases.
The $15 billion net outflow from money markets "indicates
that investors are taking money off the sidelines and putting it
back to work as well as the net inflows into below investment-
grade debt funds - high-yield funds and high-yield muni funds,"
"The outflows from Loan Participation funds are a long-term
trend starting in the early part of Q3," Keon said. The peer
group has been hurt by the Fed's slowing its pace of rate hikes,
as bank loans are floating rates.
"It’s possible the sector was overbought as well as prior to
the downturn at the start of Q4, they had net inflows in 34 of
the previous 35 weeks," Keon said.
Energy sector stock funds recorded $1.3 billion in outflows
in the same week, the largest withdrawals since October 2014,
even as oil prices edged off the 1-1/2-year lows hit last month.
The cash withdrawals for energy sector funds were
concentrated mostly in two ETFs - SPDR S&P Oil & Gas,
with $641 million of net cash outflows, and Energy Select Sector
SPDR, with $576 million of net cash outflows, Keon
The following is a breakdown of the flows for the week,
including mutual funds and ETFs:
Sector Flow Chg % Assets Assets Count
All Equity Funds -4.377 -0.07 6,777.863 12,161
Domestic Equities -5.910 -0.12 4,808.886 8,639
Non-Domestic 1.534 0.08 1,968.977 3,522
All Taxable Bond 4.323 0.16 2,743.797 5,990
All Money Market -15.046 -0.51 2,919.119 1,004
All Municipal Bond 0.946 0.22 431.107 1,413
(Reporting by Trevor Hunnicutt; Editing by Jennifer Ablan and
NEW YORK BlackRock Inc , the world's largest fund manager, reported a smaller-than-expected quarterly profit on Wednesday due to financial market turmoil, but investors celebrated the company's strong sales of relatively low-fee funds.
NEW YORK Investors sweetened on financial markets in early January and ended a 13-week retreat from U.S.-based funds, the Investment Company Institute (ICI) said on Wednesday.
RALEIGH, N.C. The ongoing partial shutdown of the U.S. government could increase uncertainty surrounding the state of the economy and the direction of interest rates, Richmond Federal Reserve President Thomas Barkin said on Thursday.