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Inflows into U.S. bond funds dwarf equity purchases in 2021 -Lipper -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO: A dealer works on the buying and selling ground on the New York Inventory Alternate (NYSE) in Manhattan, New York Metropolis, U.S., August 9, 2021. REUTERS/Andrew Kelly/File Picture

(Reuters) – U.S. bond funds have attracted report inflows this yr, regardless of worries about inflation and expectations the Federal Reserve might roll again its pandemic-era stimulus measures earlier.

In keeping with Refinitiv Lipper knowledge, U.S. bond funds attracted a web $612 billion within the first eleven months of this yr, already surpassing the report influx of $486.18 billion recorded in 2019.

In the meantime, U.S. fairness funds noticed web inflows of $248.81 billion after two years of outflows.

The upper inflows into U.S. bond funds, regardless of a rally in equities, highlights an investor desire for security and secure returns in the course of the second yr of the COVID-19 pandemic.

The Lipper knowledge confirmed U.S. fairness funds have delivered a return of 16.4% on common to date this yr, in contrast with 0.8% for bond funds.

(Graphic: Fund flows into U.S. equities bonds and cash market, https://fingfx.thomsonreuters.com/gfx/mkt/mypmnabxwvr/Fundpercent20flowspercent20intopercent20U.S.%20equitiespercent20bondspercent20andpercent20moneypercent20market.jpg)

U.S. taxable bond funds drew a report $465.89 billion in web shopping for whereas municipal bond funds secured purchases of $96.5 billion.

U.S. quick/intermediate investment-grade funds noticed inflows of $242.22 billion, a 12% improve over the primary 11 months of 2020, U.S. basic home taxable fastened earnings funds obtained $113.35 billion, a three-fold improve, whereas inflation protected funds attracted a report $70.77 billion.

(Graphic: Flows into US bond funds, https://fingfx.thomsonreuters.com/gfx/mkt/zdpxoxqkzvx/Flowspercent20intopercent20USpercent20bondpercent20funds.jpg)

Amongst fairness sector funds, financials are on monitor for his or her first annual inflows in 4 years, totalling $23.91 billion to the top of November, whereas buyers bought tech funds price $22.22 billion.

In the meantime, U.S. cash market funds are set for a fifth consecutive yr of inflows with web inflows of $266.36 billion to date.

(Graphic: Fund flows into US development and worth funds, https://fingfx.thomsonreuters.com/gfx/mkt/mopanqwdava/Fundpercent20flowspercent20intopercent20USpercent20growthpercent20andpercent20valuepercent20funds.jpg)

Within the week ended Dec. 8, U.S. bond funds attracted a web $4.83 billion, though fairness funds witnessed outflows of $6.46 billion after web purchases of $7.87 billion within the earlier week.

(Graphic: Flows into US fairness sector funds, https://fingfx.thomsonreuters.com/gfx/mkt/gkplglbaevb/Flowspercent20intopercent20USpercent20equitypercent20sectorpercent20funds.jpg)

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