bond fund inflows biggest in nearly two years: Lipper
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[January 13, 2017]
By Sam Forgione and Jennifer Ablan
YORK (Reuters) - Investors in U.S.-based funds poured $4 billion into
investment-grade corporate bond funds in the week ended Jan. 11, marking
the funds' biggest inflows since early February 2015, data from Thomson
Reuters' Lipper service showed on Thursday.
Taxable bond funds overall attracted $3.9 billion in new cash to mark
their biggest inflows since late September. Stock funds attracted $2.4
billion in inflows to mark their third straight week of new demand.
The inflow into U.S.-based investment-grade corporate bond funds marks
the fourth such week of inflows, Lipper said.
"The relatively strong stability and income investment-grade corporate
bonds provide are particularly appealing amid the uncertainty that has
materialized to start the year," said Todd Rosenbluth, director of ETF &
Mutual Fund Research at CFRA.
U.S.-based high-yield "junk" bonds also enjoyed another week of
investors hunting for yield. The group posted inflows of $564 million
over the weekly period, the third straight week of inflows, according to
Pat Keon, senior research analyst at Thomson Reuters Lipper, noted that
Loan Participation, also known as bank loan funds, have enjoyed a good
run since the presidential election: More than $6.9 billion, including
inflows of $795 million last week.
"It is a favorable environment for bank loans at U.S.-president-elect
Donald Trumpís promise of less regulation will make it easier to loan
money out and rising interest rates favor them due to their floating
rates," Keon said.
For their part, U.S.-based stock funds attracted $2.4 billion in the
week ended Wednesday, marking their third straight week of inflows. That
said, all of those inflows went into popular exchange-traded funds: U.S.
stock ETFs attracted $3.3 billion of inflows over the weekly period, and
U.S.-based stock mutual funds posted $916 million of outflows.
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Overall, U.S.-based domestic-focused stock funds posted $386 million of
cash withdrawals, their first outflows in three weeks, while U.S.-based
non-domestic-focused stock funds attracted $2.8 billion inflows, their
biggest since March 2016.
U.S.-based money market funds posted $21.1 billion of outflows over the
weekly period, their biggest in three weeks, Lipper said. U.S.-based
Emerging Markets equity funds attracted $582 million of new cash, their
second straight week of inflows, while U.S.-based Emerging Markets debt
funds attracted $172 million over the weekly period, their second week
The following is a broad breakdown of the flows for the week, including ETFs (in $ billions):
Sector Flow Chg % Assets Assets Count
All Equity Funds 2.430 0.04 5,543.802 11,819
Domestic Equities -0.386 -0.01 3,978.984 8,440
Non-Domestic 2.816 0.18 1,564.818 3,379
All Taxable Bond 3.862 0.17 2,318.383 5,960
All Money Market -21.088 -0.89 2,355.005 1,041
All Municipal Bond 0.974 0.27 368.486 1,407
(Reporting by Sam Forgione; Editing by Jennifer Ablan, Bernard Orr)
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