• Aug. 17, 2017, 6:12 pm

U.S.-based taxable bond funds attract $1.7 bln in week: Lipper

By Sam Forgione

NEW YORK (Reuters) – Investors in U.S.-based funds poured $1.7 billion into taxable bond funds in the week ended April 29, marking the seventh straight week of inflows into the funds, data from Thomson Reuters’ Lipper service showed on Thursday.

High-yield bond funds posted $859 million in outflows, in a second straight week of withdrawals, while investment-grade bond funds attracted $1.5 billion in a second straight week of inflows.

Stock funds attracted $689 million in inflows, in a third straight week of inflows.

Patrick Keon, research analyst at Lipper, said taxable bond funds have had positive flows every week so far this year, totaling more than $28.8 billion. But Keon said equity funds are doing slightly better this year with net inflows of over $29.9 billion. “The equity fund flows have been more volatile while the taxable bond activity has been more slow and steady,” Keon said.

So far this year, all of the net new cash into equity funds has flowed into U.S.-based non-domestic stock funds. Keon said they’ve attracted more than $35.7 billion versus U.S.-based domestic stock funds with net withdrawals of $5.8 billion.

U.S.-based emerging market equity funds attracted $892 million of net inflows, a sixth week of inflows, according to Lipper data. U.S.-based emerging market debt funds posted inflows of $88 million in the latest reporting period, after $84 million in outflows the prior week, Lipper added.

U.S.-based money market funds posted $8 billion of outflows, their fifth straight week of net outflows, partly stemming from tax-related issues.

(Reporting by Sam Forgione; Editing by Jennifer Ablan and Leslie Adler)

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