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U.S. equity funds see massive outflows on tech selloff -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO – A Wall Street sign can be seen at the New York Stock Exchange in New York City (NY), U.S.A, on January 3, 2019. REUTERS/Shannon Stapleton/File Photo

(Reuters] – U.S. Investors increased the volume of their equity fund sales during the week Jan. 26 to January 26, triggered by a fall in tech stocks and increasing geopolitical tensions with Russia and Ukraine.

Refinitiv data indicates that U.S. equity fund investors offloaded $9.42 billion last week, which is more than twice what it had offloaded in the previous week. (Graphic: Fund flows: US equities bonds and money market funds, https://fingfx.thomsonreuters.com/gfx/mkt/egvbklymapq/Fund%20flows%20US%20equities%20bonds%20and%20money%20market%20funds.jpg)

The market slumped over the past week as the Federal Reserve policy meeting was preceded by a decline in tech stocks. This overshadowed positive results from blue-chip businesses including IBM (3M)

The Fed’s latest policy update was published Wednesday. It indicated that it is likely to increase rates in March as expected and reiterated its plans to stop its pandemic-era bond buying in March before initiating a substantial reduction in its assets holdings.

U.S. Growth funds saw outflows totalling $11.75 Billion, which is the highest in seven weeks. Investors poured $465 M into value funds. (Graphic: Fund flows: US growth and value funds, https://fingfx.thomsonreuters.com/gfx/mkt/xmvjojklepr/Fund%20flows%20US%20growth%20and%20value%20funds.jpg)

Inflows to sector funds were higher for industrials and real estate than technology. Financials sector funds saw inflows of $407 million and $450 million, respectively. (Graphic: Fund flows: US equity sector funds, https://fingfx.thomsonreuters.com/gfx/mkt/dwpkrjdakvm/Fund%20flows%20US%20equity%20sector%20funds.jpg)

In the meantime, net sales of U.S. Bond funds reached $7.04 Billion, the highest in six consecutive weeks.

U.S. municipal bonds funds were sold by investors for $1.61 billion. This was the largest outflow since April 2020. U.S. tax bond funds saw outflows in excess of $5.38 million. U.S. general domestic tax fixed income funds and loan participation fund received $2.89 and $2 respectively. (Graphic: Fund flows: US bond funds, https://fingfx.thomsonreuters.com/gfx/mkt/myvmnjogqpr/Fund%20flows%20US%20bond%20funds.jpg)

After three weeks of net outflows, U.S. money markets funds have received $25.46 billion in net purchases.

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