US equity funds see biggest weekly outflow in two months


US investors cut their equity fund holdings and boosted safer positions in the seven days to Aug. 14 amid persistent concerns over an economic slowdown and recent market volatility.

Investors withdrew a net $8.92 billion from US equity funds in the largest weekly selloff since June 12, while channeling $16.1 billion and $3.35 billion into money market and government bond funds, respectively, according to LSEG data.

Fund investors remained risk-averse amid recent turbulence in risk assets, though benign U.S. inflation data and strong July retail sales have buoyed stocks this week.

In the week to Aug. 14, US large-cap equity funds experienced a net outflow of $6.08 billion, the most in nine weeks, with small-cap, mid-cap, and multi-cap funds also recording outflows of $1.41 billion, $404 million and $72 million, respectively.

Sectoral funds registered their first weekly net inflow in four weeks, gaining $380 million, buoyed by significant inflows of $802 million in utilities and $541 million in financials.

US bond funds attracted $3.55 billion in net purchases, marking their 11th consecutive weekly inflow.

Investors added $1.34 billion to US short-to-intermediate government and treasury funds, and $677 million to short-to-intermediate investment-grade funds. However, they divested $948 million from general domestic taxable fixed income funds and $669 million from loan participation funds.

(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Shounak Dasgupta)



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