U.S. equity funds see outflows on rate hike prospects -Lipper

  • 11/19/2021
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Nov 19 (Reuters) - U.S. equity funds faced an outflow in the week to Nov. 17 after six consecutive weeks of inflows as investors assessed prospects of early rate hikes by the Federal Reserve amid surging consumer prices and strong retail consumption. Investors sold a net $1.98 billion in U.S. equity funds, marking the first weekly outflow since Sept. 29, Refinitiv Lipper data showed. U.S. large- and mid-cap equity funds saw net selling worth $4.56 billion and $477 million, respectively, although, small-cap funds received inflows of $193 million. U.S. value funds secured the first weekly inflow in five weeks, worth $1.32 billion. In contrast, growth funds faced an outflow for a third week, amounting to $3.26 billion. Among sector funds, technology funds received $484 million in net buying after outflows of $1.56 billion in the previous week. Financial and healthcare funds faced outflows of $482 million and $443 million, while utilities and industrials both saw net selling of over $300 million.Meanwhile, U.S. bond funds attracted $5.49 billion in net purchases, a 39.5% decline in inflows from the previous week. U.S. taxable bond funds drew $4.18 billion while U.S. municipal bond funds pulled in $1.19 billion in net purchases, each witnessing the smallest inflow in three weeks. U.S. short/intermediate government and Treasury funds received $1.65 billion, the biggest inflow in three weeks, while U.S. short/intermediate investment-grade funds attracted $914 million after a outflow in the previous week. Meanwhile, inflation-linked funds attracted a net $1.48 billion, while U.S. mortgage funds saw outflows of $237 million.Meanwhile, U.S. money market funds saw net purchases of$11.96 billion, the biggest inflow in three weeks.

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