Tuesday, October 3, 2023
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US equity funds see outflows for sixth week in a row

(Reuters) – Investors withdrew from U.S. equity funds for a sixth successive week in the seven days to Sept. 6, in the wake of downbeat economic data from China and Europe, and a surge in U.S Treasury yields.

According to LSEG data, investors withdrew a net $5.96 billion out of U.S. equity funds during the week, compared with about $4.42 billion worth net withdrawn the previous week.

Data pointing to a slowdown in the services sector in China and Europe in August, stirring concerns about global economic growth.

Meanwhile, U.S. Treasury yields surged to a two-week high on Wednesday after data showed the services sector unexpectedly accelerated in August, indicating that inflation pressures remain firm.

Investors offloaded about $3.96 billion worth of equity large-cap funds compared with about $110 million worth of net selling in the previous week. Small- mid-, and multi-cap funds also witnessed $1.56 billion, $365 million and $4 million worth of net selling, respectively.

Among sectors, communication services, consumer staples, and metals & mining saw $460 million, $320 million and $267 million, worth of net selling, respectively.

Money market funds drew $32.18 billion worth of inflows, the biggest amount in three weeks.

U.S. bond funds witnessed outflows for a fourth successive week, with about $622 million in net selling.

Investors sold U.S. general domestic taxable fixed income funds worth $1 billion, the biggest amount in three months. Government bond funds also saw about $260 million worth of outflows, the first in five weeks.

Meanwhile, high-yield bond funds obtained $696 million, staying in demand for a second successive week.



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