Technology sector funds posted $427 million in outflows, their withdrawals in seven weeks. High-yield bond funds listed $1 billion Lipper said.
Money market funds, designed to maintain their cash value even when markets falter, brought $24.6 billion during the week ended Aug 23. The products are on pace for their monthly inflows having drawn $69 billion during August, Lipper said.
Loan participation funds, invested in debt which yields listed $377 million in outflows their withdrawals in about 14 months.
Investors’ risk-averse change came as the S&P 500 was struck by a 1.5 percent selloff last Thursday, the kind of setback that has grown increasingly rare as U.S. stocks prepare to claim a ninth straight year of positive total returns.
Reporting by Trevor Hunnicutt reporting by Kimberly Chin; Editing by Andrew Hay and James Dalgleish
Equity funds, which brought $996 million in the most recent week, have recorded outflows only four weeks this year, according to Lipper. Investment-grade debt funds haven’t seen a single week of outflows in 2017, pulling in $3.3 billion during the most recent seven-day period.
NEW YORK (Reuters) – Investors socked savings off and opted against loading up on U.S. stocks during the most recent week, Lipper data for U.S.-based funding showed on Thursday.
Meanwhile bets on inflation and rising rates are evaporating as policymakers convene for a summit in Wyoming.
Yet funds invested in certain types posted $300 million in outflows throughout the week, the most.
Fund flows show more confidence in high-rated bonds and worldwide stocks than in stocks.
Investors are wary of whether tax reform and other promised U.S. government policies will come to fruition and raise markets further, said Pat Keon, senior research analyst for Thomson Reuters’ Lipper unit. A late-September deadline also loomed for U.S. officials to raise the amount of money the government can borrow, or risk default.
Central bankers have kept developed economies’ interest rates near historic lows to stoke growth, and inflation has fallen short of amounts that would push them to make a radical change. The value of a bond hurts.