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The drawdown in money fund assets, which companies use as
alternatives to bank accounts to manage their cash, likely
stemmed from two factors: corporate tax receipts and investor
payment on Treasury supply, said Pat Keon, senior research
analyst at Thomson Reuters Lipper.
Last week, corporations were sending cash to the government
ahead of a quarterly tax deadline. On June 15, the Treasury said
it received $26.0 billion in corporate taxes, compared with
$42.2 billion a year earlier.
Moreover, the Treasury raised about $43 billion in new cash as
investors settled on what they bought at last week's Treasury
auctions, which included $68 billion worth of three-year,
10-year and 30-year debt.
Meanwhile, U.S.-based equity funds posted $1.27 billion of net
outflows in the week ended Wednesday, marking the third
consecutive week of cash withdrawals, Lipper said.
The majority of those outflows came from U.S.-based equity
exchange-traded funds, which posted net outflows of $5.8
billion. Conversely, U.S.-based equity mutual funds attracted
$4.6 billion of net new cash for the same period, according to
Lipper.
Emerging-market funds saw another volatile week. Investors
pulled $4.36 billion of net cash from U.S.-based emerging market
equity funds and $452 million from U.S.-based emerging market
debt funds, according to Lipper data.
(Additional reporting by Richard Leong; Editing by James
Dalgleish and Rosalba O'Brien)
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