– U.S. equity funds lured massive inflows in the week to Feb. 9 as upbeat earnings reports and signs of easing tensions in Ukraine boosted risk appetite. Refinitiv data showed U.S. equity funds drew $14.2 billion in their biggest weekly purchase since Dec. 29, in contrast to outflows witnessed in the previous three weeks.
Fund flows: US equities bonds and money market funds – https://fingfx.thomsonreuters.com/gfx/mkt/lgpdwxelkvo/Fund%20flows%20US%20equities%20bonds%20and%20money%20market%20funds.jpg
During the week, investors took comfort from an upbeat earnings performance from U.S. companies including Amazon.com Inc, KFC-parent Yum Brands Inc, and Enphase Energy Inc, which eased concerns over rising bond yields. Of the 358 S&P 500 companies that have reported earnings so far, 81% beat the consensus net income estimates, Refinitiv data showed.
U.S. large cap funds drew $9.44 billion in net buying, the most in eight weeks, mid-cap funds attracted $0.65 billion, while small-caps witnessed outflows of $2.38 billion.
U.S. value funds gained inflows of $784 million, the biggest in three weeks, and growth funds saw net selling of $595 million after a weekly inflow in the previous week.
Fund flows: US growth and value funds – https://fingfx.thomsonreuters.com/gfx/mkt/zjvqkagenvx/Fund%20flows%20US%20growth%20and%20value%20funds.jpg
Among sector funds, financials attracted $1.66 billion, marking the biggest inflow in four weeks, while utilities lured $802 million in net buying. Technology, health care and materials sector funds posted outflows of $640 million, $447 million and $409 million respectively.
Fund flows: US equity sector funds – https://fingfx.thomsonreuters.com/gfx/mkt/klvykmozdvg/Fund%20flows%20US%20equity%20sector%20funds.jpg
U.S. bond funds saw outflows for a fifth straight week, worth $2.8 billion, although a 35% drop over the previous week. Investors sold U.S. taxable bond funds of $2.37 billion in a fifth successive week of net selling, while outflows form municipal bond funds eased to a four-week low of $12 million. U.S. high yield and, short/intermediate investment-grade funds, both witnessed outflows for a fifth consecutive week, worth $2.13 billion and $1.63 billion respectively. Loan participation funds lured $2.23 billion in net buying.
Fund flows: US bond funds – https://fingfx.thomsonreuters.com/gfx/mkt/myvmnjwgxpr/Fund%20flows%20US%20bond%20funds.jpg
Investors sold inflation protected-funds for a third successive week, worth $1.21 billion. Meanwhile, U.S. money market funds witnessed outflows of $33.49 billion, nearly twice compared with the previous week.
(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; editing by Barbara Lewis)