(Reuters) – U.S. equity funds saw an outflow in the week leading up to September 8, amid concerns the spread of the delta coronavirus variant could slow economic growth and uncertainty over the Fed’s timetable, withdraw their accommodating policies.
Data from Lipper showed that U.S. equity funds saw an outflow of $ 1.85 billion for the week through Wednesday, compared to an inflow of $ 11.18 billion the previous week.
Chart: Fund flows into US reverse convertibles and the money market: https://fingfx.thomsonreuters.com/gfx/mkt/byvrjljqkve/Fund%20flows%20into%20U.S.%20equities%20bonds%20and%20money%20market. jpg
Investors also rated data showing the US economy created the fewest jobs in seven months in August, which had an impact on risk sentiment.
U.S. equity growth funds saw net sales of $ 4.72 billion, the largest outflow in seven weeks, while value funds saw net outflows of $ 541 million for the third straight week.
Among the equity funds, real estate funds attracted a net $ 2.29 billion, the highest since at least mid-October 2019. However, the financial, industrial, and materials sectors faced outflows of $ 1.05 billion, $ 857 million and US $ 857 million, respectively Accept $ 512 million.
Chart: Fund flows into US growth and value funds: https://fingfx.thomsonreuters.com/gfx/mkt/egpbkykolvq/Fund%20flows%20into%20U.S.%20growth%20and%20value%20funds.jpg
Chart: Inflows into US equity funds: https://fingfx.thomsonreuters.com/gfx/mkt/lbvgngnllpq/Flows%20into%20US%20equity%20sector%20funds.jpg
Meanwhile, US bond funds rose $ 5.29 billion net for an eighth straight week of inflows.
U.S. taxable pension funds received $ 4.74 billion net, down 40% from the previous week, while U.S. municipal pension funds received their lowest inflow in nearly four months at $ 833 million.
US inflation-protected funds infused $ 1.1 billion net, marking a seventh week of inflows, while short / intermediate state and treasury funds received $ 1.3 billion net, up 53% compared to the previous week.
However, US money market funds saw outflows worth $ 5.69 billion net for the second straight week.
Graphic: US bond fund inflows: https://fingfx.thomsonreuters.com/gfx/mkt/mypmnonarvr/Flows%20into%20US%20bond%20funds.jpg
(Reporting by Gaurav Dogra and Patturaja Murugaboopathie in Bengaluru; editing by Bernadette Baum)