GRAPHIC-Inflows in US bond funds eclipse stock purchases in 2021 -Lipper


December 10 (Reuters)U.S. bond funds have attracted record inflows this year, despite concerns about inflation and expectations that the Federal Reserve may reverse its pandemic-era stimulus earlier.

According to data from Refinitiv Lipper, US bond funds have attracted a net amount of $ 612 billion in the first eleven months of this year, already surpassing the record inflow of $ 486.18 billion recorded in 2019.

Meanwhile, US equity funds posted net inflows of $ 248.81 billion after two years of outflows.

The increase in inflows to U.S. bond funds, despite a rally in equities, highlights an investor preference for safety and stable returns in the second year of the COVID-19 pandemic.

Lipper data showed that US equity funds have returned 16.4% on average so far this year, compared to 0.8% for bond funds.

U.S. taxable bond funds attracted a record $ 465.89 billion in net purchases while municipal bond funds secured purchases of $ 96.5 billion.

US short / mid-range investment grade funds recorded inflows of $ 242.22 billion, an increase of 12% in the first 11 months of 2020, US general taxable fixed income funds received 113.35 billion dollars, a threefold increase, while inflation-protected funds attracted a record $ 70.77 billion.

Among equity sector funds, financials are on track for their first annual inflows in four years, totaling $ 23.91 billion at end-November, while investors bought tech funds worth $ 22.22. billions of dollars.

Meanwhile, US money market funds are expected to experience a fifth consecutive year of inflow with net inflows of $ 266.36 billion to date.

In the week ended December 8, U.S. bond funds attracted a net $ 4.83 billion, although equity funds recorded outflows of $ 6.46 billion after net purchases of $ 7.87 billion the week before.

The fund invests in US equity bonds and the money market

Flows in US bond funds

Funds flock to US growth and value funds

Flows in US Equity Sector Funds

(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; editing by Kirsten Donovan)

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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