Off The Wire
U.S. equity funds register biggest weekly outflow in about 1-1/2 years
Dec 9 (Reuters) - U.S. equity funds posted enormous outflows in the week to December 7 as investors fretted over the Federal Reserve's rate hikes, with data showing a rebound in employment and a pick up in the services sector.
According to data from Refinitiv Lipper, U.S. equity funds recorded withdrawals of $26.66 billion, the biggest weekly outflow since April 2021.
Investors were also worried as the biggest U.S. banks including Goldman Sachs, J.P. Morgan, and Bank of America, warned of a recession as inflation threatens consumer demand. read more
U.S. equity growth funds saw $9.91 billion worth of withdrawals while value funds witnessed net disposals of $2.03 billion, as selling continued for a third straight week in each segment.
Data for sectoral funds showed tech, financials and consumer discretionary funds lost $1.27 billion, $761 million and $527 million, respectively, in outflows.
Meanwhile, U.S. bond funds received a net $992 million in inflows after witnessing weekly outflows for four weeks.
U.S. taxable bond funds had net purchases of $886 million after three weeks of selling in a row, although municipal bond funds suffered small outflows, amounting to $53 million.
U.S. investors purchased high-yield bond funds of $318 million and government bond funds of $1.06 billion in their biggest weekly net purchase since Nov. 16. Still, general domestic taxable fixed income funds recorded $794 million worth of outflow.
Meanwhile, U.S. money market funds obtained $36.19 billion in inflows, the biggest amount for a week since Nov. 2.