US equity funds suffer from outflows for the fourth week

US equity funds suffer from outflows for the fourth week

(Reuters) – U.S. equity funds reported net outflows for the fourth consecutive week in the week ending September 14, as a higher-than-expected reading of U.S. inflation raised bets that the Federal Reserve will continue to raise interest rates aggressively.

Some investors expected the US CPI report to show inflation eased in August, and to provide an opportunity for the Federal Reserve to ease policy tightening.

According to Refinitiv Lipper data, investors have unloaded $10.52 billion from US equity funds, after sales of $14.6 billion in the previous week.

Graphic: Fund Flows: US Equity Bonds and Money Market Funds

Large VC funds net sales in the United States were nearly 70% higher than the previous week, at $7.74 billion, while smaller funds reported weekly net outflows of $605 million. Mid-cap funds bucked the trend with net inflows of $183 million.

Investors attracted $5.42 billion and $1.29 billion, respectively, in US growth and value funds.

Graphic: Fund Flows: US Growth and Value Funds

Technology money, communications services and finance suffered net outflows of $962 million, $595 million and $203 million, respectively, but consumer goods attracted $1.39 billion worth of net buying.

Graphic: Fund Flows: US Equity Sector Funds

US bond funds attracted $509 million in the second week of net buying, although inflows fell by about half from the previous week.

Investors bought US government bond funds and high-yield net worths of $5.32 billion and $555 million, respectively, but exited public taxable fixed income funds and municipal debt funds to the tune of $1.78 billion and $1.7 billion.

Graphic: Fund Flows: US Bond Funds

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Meanwhile, money market funds posted a third week of net outflows, this time at $13.43 billion.

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