U.S. Equity Funds Receive Large Inflows As Investors Downgrade Omicron-Lipper Impact
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(Reuters) – U.S. equity funds received large inflows for a second week in the seven days leading up to December 29, as investors welcomed signs that the Omicron coronavirus variant would not bring a big boost setback to the economy.
According to data from Refinitiv Lipper, U.S. equity funds attracted net purchases of $ 19.43 billion, compared to an average weekly inflow of $ 2.3 billion, received this year.
Chart: Fund Flows: US Equities, Bonds and Money Market Funds- https://fingfx.thomsonreuters.com/gfx/mkt/myvmnbnqqpr/Fund%20flows%20U.S.%20equities%20bonds%20and%20money%20market % 20funds .jpg
The main Wall Street indices have posted solid gains this week. The S&P 500 and Dow hit a record high on Thursday as some early studies of Omicron cases indicated a reduced risk of hospitalization, easing concerns about the variant’s impact on the economy.
The sentiments were also bolstered by reports suggesting that U.S. retailer sales for the holidays were strong.
US growth and value funds both had a second straight week of fundraising with net purchases of $ 7.69 billion and $ 2.36 billion respectively.
Chart: Fund Flow: US Growth & Value Funds- https://fingfx.thomsonreuters.com/gfx/mkt/movanwnbzpa/Fund%20flows%20US%20growth%20and%20value%20funds.jpg
Among sector funds, financial and real estate funds attracted $ 1.2 billion and $ 785 million in inflows, respectively, although technology and consumer staples funds recorded outflows of $ 592 million and $ 413 million. dollars respectively.
Chart: Fund Flow: US Equity Sector Fund- https://fingfx.thomsonreuters.com/gfx/mkt/gkvlgbgqkpb/Fund%20flows%20US%20equity%20sector%20funds.jpg
U.S. bond funds got inflows of $ 6.31 billion, their biggest weekly inflow in seven weeks.
Investors bought taxable U.S. bond funds for $ 5.27 billion, marking the biggest weekly inflow since November 10, while municipal bond funds recorded net purchases worth $ 1.13 billion .
General taxable U.S. bond funds drew $ 1.93 billion in cash inflows, the largest in seven weeks. Short / Intermediate State and Treasury Funds and Inflation-Protected Funds attracted $ 929 million and $ 637 million, respectively.
Meanwhile, U.S. money market funds recorded net purchases worth $ 32.71 billion, their biggest weekly inflow since October 27.
(Reporting by Gaurav Dogra in Bengaluru; editing by Grant McCool)