© Reuters. A person walks by the New York Stock Exchange (NYSE) in New York City, U.S., January 5, 2023. REUTERS/Andrew Kelly
(Reuters) – U.S. equity funds recorded a seventh straight week of outflows in the seven days to Jan. 4 on concerns that the Federal Reserve might continue to hike rates to tame inflationary pressures.
Investor caution ahead of the release of minutes from the Fed’s latest meeting also hit appetite for equities.
Graphic – Fund flows: US equities, bonds and money market funds – https://fingfx.thomsonreuters.com/gfx/mkt/lbpggorodpq/Fund%20flows%20US%20equities%20bonds%20and%20money%20market%20funds.jpg
Refinitiv Lipper data showed investors offloaded a net $20.72 billion worth of U.S. equity funds, compared with net withdrawals of $5.56 billion the previous week.
Data released on Thursday highlighted a tighter jobs market as U.S. private payrolls increased by more than expected in December, fuelling further worries over inflation.
Graphic – Fund flows: US growth and value funds – https://fingfx.thomsonreuters.com/gfx/mkt/egvbymnmxpq/Fund%20flows%20US%20growth%20and%20value%20funds.jpg
U.S. growth funds suffered a seventh straight week of net outflows at $7.12 billion, while withdrawals from value funds were $2.49 billion.
Data showed tech, healthcare and financial sector funds recorded outflows of $776 million, $485 million and $484 million, respectively.
Outflows from U.S. bond funds eased to a 16-week low of $51 million, the data showed.
Graphic – Fund flows: US equity sector funds – https://fingfx.thomsonreuters.com/gfx/mkt/lgpdklmlbvo/Fund%20flows%20US%20equity%20sector%20funds.jpg
U.S. taxable bond funds had their first weekly inflow in eight weeks, at $80 million, but municipal bond funds suffered a fifth weekly outflow, totalling $2.01 billion.
Investors purchased U.S. short/intermediate government & Treasury funds of $3.93 billion, marking their biggest weekly net buying since Sept. 28, although high-yield, and short/intermediate investment-grade bond funds faced outflows of $1.96 billion and $1.26 billion, respectively.
Graphic – Fund flows: US bond funds – https://fingfx.thomsonreuters.com/gfx/mkt/klvygzezwvg/Fund%20flows%20US%20bond%20funds.jpg
Money market funds had inflows for a second straight week, which amounted to a net $69.46 billion.