(Reuters) – U.S. investors purchased money market funds and withdrew cash from higher risk equity funds in the week to Feb. 23, as a rush for safety dominated markets in the run up to Russia’s invasion of Ukraine. U.S. money market funds accumulated capital worth a net $5.98 billion in their first weekly inflows since Jan 26.
Fund flows: US equities bonds and money market funds – https://fingfx.thomsonreuters.com/gfx/mkt/byprjerozpe/Fund%20flows%20US%20equities%20bonds%20and%20money%20market%20funds.jpg
Some weak earnings reports added to the gloom as companies, including TripAdvisor Inc and Home Depot Inc, reported disappointing results, while one of the world’s largest lithium producers Albemarle Corp forecast full-year earnings slightly below estimates. Investors sold U.S. equity funds worth $1.92 billion, marking the first weekly outflow in three weeks. U.S. growth-oriented equity funds witnessed net selling of $2.61 billion, the biggest in three weeks, in contrast, value funds received $537 million in net buying.
Fund flows: US growth and value funds – https://fingfx.thomsonreuters.com/gfx/mkt/lgpdwalwwvo/Fund%20flows%20US%20growth%20and%20value%20funds.jpg
Among sector funds, financials and tech had outflows of $1.07 billion and $0.87 billion respectively, while healthcare and consumer discretionary, each had outflows worth about $0.5 billion.
Fund flows US equity sector funds – https://fingfx.thomsonreuters.com/gfx/mkt/lbpgnzonrvq/Fund%20flows%20US%20equity%20sector%20funds.jpg
U.S. bond funds lost $3.66 billion in a seventh consecutive week of net selling, but the net selling was 92% lower than the previous week.Investors sold municipal bond funds of $1.35 billion, while U.S. taxable bond funds posted outflows of $1.53 billion in a seventh straight week of net selling. U.S. short/intermediate investment-grade, and high-yield funds saw weekly outflow for seventh week in a row, worth $2.93 billion and $1.14 billion respectively. U.S. general domestic taxable fixed income funds gained $1.15 billion in net buying.
Fund flows: US bond funds – https://fingfx.thomsonreuters.com/gfx/mkt/klvykbzkzvg/Fund%20flows%20US%20bond%20funds.jpg
(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru. Editing by Jane Merriman)
