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U.S. Treasury, investment-grade and money funds attract $16.6 bln in risk-averse week


Reuters


By Jennifer Ablan

Aug 15 (Reuters) - Investors rushed into their favorite safe-haven assets such as Treasuries, investment-grade corporate bonds and money market funds in the latest week, which was marked by rising tensions over the U.S.-China trade war and the global economic slowdown.

U.S.-based money-market funds attracted roughly $10.6 billion in the week ended Wednesday, the second straight week of inflows, according to Refinitiv's Lipper. U.S.-based investment-grade corporate bond funds attracted more than $4 billion and U.S.-based government and Treasury funds attracted more than $2 billion, Lipper data showed.

"Money went into safe havens, which is what you would expect after yesterday, but this is the continuation of long-term trends," said Pat Keon, senior research analyst at Lipper.

Taxable bond funds took in net new money totaling more than $5.8 billion for the 11th week in 12, Keon said. Equity mutual funds extended their losing streak to 26 straight net outflows at negative $4.6 billion, he said.

"Equity ETFs, an asset group where we've seen some week-to-week variation between net inflows and net outflows did the opposite of what you would expect from the markets and had net inflows of $7.7 billion," Keon said. The SPDR S&P 500 ETF Trust and the Invesco QQQ Trust Series 1 "paved the way here" with net inflows of $5.9 billion and $2.9 billion, respectively, he said.

All told, Keon said "What stands out to me is I don't see any reaction to yesterday's market turmoil in the flows results. Specifically, I would have expected to see net outflows from equity ETFs and maybe a larger net inflow into money markets."

The following is a broad breakdown of the flows for the week, including mutual funds and exchange-traded funds:

Sector

Flow Chg ($Bil)

% Assets

Assets ($Bil)

Count

All Equity Funds

3.101

0.04

6,958.321

11,726

Domestic Equities

4.459

0.09

5,004.499

8,327

Non-Domestic Equities

-1.357

-0.07

1,953.822

3,399

All Taxable Bond Funds

5.756

0.19

2,986.518

5,839

All Money Market Funds

10.587

0.33

3,229.220

1,014

All Municipal Bond Funds

1.625

0.33

493.511

1,343






Referenced Symbols: QQQ ,



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