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☆ U.S. equity funds register biggest weekly outflow in over five weeks
▼ + stars: | 2022-12-02 | by ( ) www.reuters.com time to read: +2 min

read moreAccording to data from Refinitiv Lipper, U.S. equity funds saw outflows of $17.37 billion, the biggest amount for a week since June 15. U.S. equity growth and value funds both witnessed outflows for a second straight week, with disposals amounting to $6.8 billion and $1.76 billion, respectively. Fund flows: US equity sector fundsData for U.S. bond funds showed investors withdrew $10.41 billion in a fourth straight week of net selling. U.S. investors sold taxable bond funds of $8.91 billion, marking a third straight week of outflow, while exiting $288 million out of municipal bond funds. Fund flows: US bond fundsMeanwhile, safer U.S. money market funds received $26.95 billion, the biggest amount in four weeks, and government bond fund attracted $738 million.

☆ Global equity funds post biggest weekly outflow in six weeks
▼ + stars: | 2022-12-02 | by ( ) www.reuters.com time to read: +2 min

According to Refinitiv Lipper data, investors withdrew a net $5.44 billion out of global equity funds, the highest since the week ended Oct. 19. Fund flows: Global equity sector fundsMeanwhile, global bond funds also remained out of favour for a fourth consecutive week, recording outflows worth a net $14.14 billion. Global short- and mid-term bond funds lost $3.51 billion in a 15th straight week of outflow, while investors exited $1.09 billion worth of high-yield funds after two weeks in a row of purchases. However, safer money market funds and government bond funds remained in demand, obtaining a net of $29.07 billion, the biggest in four weeks, and $1.86 billion respectively. According to data available for 24,756 emerging market (EM) funds, equity funds secured $656 million in a second straight week of inflows.

LONDON, Dec 2 (Reuters) - Investors have withdrawn $316 billion from credit funds this year, unwinding all of the previous year's inflows, BofA Global Research said in a note on Friday. In its latest note on fund flows, BofA said equities funds had seen inflows of $207 billion in 2022, below the "euphoric inflows" of the previous year. Equity funds suffered a $14.1 billion outflow in the largest exit in three months, BofA said, citing EPFR data. Cash funds attracted $31.1 billion of inflows and gold funds added $59 million, BofA added. In emerging markets, BofA said bonds had a 15th week of outflows, losing $500 million, while equities attracted $1.1 billion of inflows.

☆ How High Will CD Rates Go in 2023?
▼ + stars: | 2022-12-01 | by ( ) www.wsj.com time to read: +6 min

Whether or not CD rates will continue to rise in 2023 depends a lot on what the Fed does to fight inflation, with higher inflation likely higher interest rates. Where will CD rates go in 2023? There is no direct relationship between CD rates and those set by the Federal Reserve, since banks can offer whatever interest rates they wish. And that means that CD rates likely have a little room to rise, but not a whole lot. While CD rates continually shift, it’s now possible to find rates of between 4% and 5% from well-known institutions like Capital One, BMO Harris, Synchrony and more.

They fired their financial advisor and decided to manage their investments independently. "Investing in index funds had been around for decades but had been cast as a boring, predictable, and lazy approach to investing. While Julien's financial advisor wasn't intentionally malicious, Julien was shocked to learn that his financial advisor wasn't legally obligated to make recommendations in his best interest. That's index funds — kind of boring, but a safer place for your cash over the long run. "When you're investing in index funds, you're betting on the fact that overall a given index will continue to deliver favorable results," the couple writes.

☆ Global equity funds face weekly outflows on growth worries
▼ + stars: | 2022-11-25 | by ( ) www.reuters.com time to read: +2 min

Nov 25 (Reuters) - Global equity funds saw outflows in the week ended Nov. 23 on worries over a recession due to higher interest rates and fresh lockdowns as COVID cases rise in China. According to Refinitiv Lipper data, investors withdrew $8.6 billion and $840 million respectively from U.S. and European equity funds but invested $470 million in Asian equity funds. Meanwhile, global bond funds posted outflows for a third straight week, amounting to $2.52 billion. Meanwhile, global government bond funds received inflows worth $809 million in a third straight week of net buying. Fund flows: Global equity sector fundsThe data showed investors accumulated global money market funds worth $26.4 billion, compared with an outflow of $9.4 billion in the previous week.

But you have to go back centuries in some cases to get anything nearly as bad as 2022 for 'safer' sovereign bonds. "2023 will be the year of the bond," claimed Chris Iggo, chair of the AXA IM Investment Institute. "Road to recession - bullish bonds and quality credit," was how SocGen entitled their view. And while stock volatility makes forecasters nervy, there's a clear attraction for long-term funds in seeking both the fixed income as well as the lift to bond funds when sub-par price discounts disappear into maturity for most high-quality names. "Long high quality bonds in the U.S. and Europe seems like an obvious strategy for 2023," said hedge fund manager Stephen Jen at Eurizon SLJ Capital.

☆ Analysis: Investors warm to European corporate bonds after a brutal year
▼ + stars: | 2022-11-23 | by ( Harry Robertson | ) www.reuters.com time to read: +4 min

A net $3.62 billion flowed into BlackRock's exchange-traded products which track investment grade European corporate debt in the 30 days to November 17. This has buoyed government bond prices, pushing their yields down, and boosted riskier assets such as corporate bonds and stocks. The iBoxx euro corporate bond index (.IBBEU003D) has risen almost 4% since hitting an eight-year low in October, although it remains down 13% for the year. Goldman Sachs strategists recently told clients that one- to five-year European corporate bonds are "very attractive". They said they're more appealingly priced than U.S. corporate debt, with many investors overly pessimistic about the outlook for Europe's economy.

LONDON, Nov 18 (Reuters) - Inflows into global equity funds hit their highest level in 35 weeks in the week to Wednesday, according to a report from Bank of America (BofA), as investor optimism brightened. Investors poured a net $22.9 billion into equities, BofA said, citing EPFR data, and $4.2 billion into bonds. They pulled $3.7 billion from cash funds and $300 million from gold. U.S. equity funds saw inflows just shy of $24 billion in the week to Wednesday, BofA said. Money flowed into emerging market (EM) equities for the fourth week running, at $1.9 billion.

☆ Retirement savers seek safe havens within their 401(k) plans. They may regret it later
▼ + stars: | 2022-11-17 | by ( Greg Iacurci | ) www.cnbc.com time to read: +1 min

Data suggests some retirement savers are seeking out safe havens within their 401(k) plans. Investors sold out of target-date funds and large-cap U.S. stock funds in October in favor of "safer" ones, such as stable value, money market and bond funds, according to Alight Solutions, which administers company 401(k) plans. For example, stable value and money market funds captured 81% and 16% of net investor funds in October, respectively, according to Alight data. Target-date funds and large-cap stock funds accounted for 37% and 12% of net investor withdrawals, respectively; company stock funds accounted for 34% of total outflows, according to Alight. Target-date funds, the funds most popular with 401(k) plan investors, offer a mix of stocks and bonds that align with someone's expected retirement year (their target date, so to speak).

☆ Beauty of muni bonds is tax-free income. Here are three key takeaways for investors
▼ + stars: | 2022-11-15 | by ( Carmen Reinicke | ) www.cnbc.com time to read: +6 min

Municipal bonds, or munis, have outperformed other bonds this year, but have still slumped. "We suggest that if you're investing in municipal bonds, individual bonds, you invest in 10 different issues with different credit risks," he said. Investing differs from stocks Muni bonds serve a different goal in a portfolio than assets such as stocks, which you hope go up in value over time. "There's typically some price appreciation with it but it's hard to bank on price appreciation unless you're a very active muni bond trader," said Tyner. Diversified muni bond mutual funds are also a good option for investors, giving access to the muni market without having to take on the risk of buying individual bonds.

☆ Money leaves US equity funds for first time in four weeks
▼ + stars: | 2022-11-11 | by ( ) www.reuters.com time to read: +2 min

According to Refinitiv Lipper data, investors withdrew a net $10.52 billion out of U.S. equity funds in their first weekly net selling since Oct. 12. Fund flows: US equities, bonds and money market fundsInvestors withdrew U.S. large-cap funds worth $7.28 billion, the most in eight weeks, while exiting small- and mid-cap equity funds worth about $270 million each. Meanwhile, U.S. bond funds saw net selling of $2.61 billion in an eighth straight week of outflows. U.S. municipal bond funds had $2.67 billion worth of net selling, the biggest outflow in three weeks, although U.S. taxable bond funds received a marginal $43 million in net buying. U.S. general domestic taxable fixed income, short/intermediate investment-grade funds and loan participation funds faced outflows of $1.78 billion, $847 million and $603 million respectively, but investors purchased government bond funds of $1.9 billion.

☆ Global equity funds register outflows after two weeks of net buying
▼ + stars: | 2022-11-11 | by ( ) www.reuters.com time to read: +2 min

Nov 11 (Reuters) - Global equity funds registered net outflows for the first time in three weeks in the week to Nov. 9, undermined by caution ahead of the U.S. midterm election results and the release of key inflation data. According to Refinitiv Lipper data, investors exited a net $11.56 billion worth of global equity funds, after obtaining funds worth $13.98 billion in the previous week. Fund flows: Global equities bonds and money marketThe U.S. and European equity funds recorded withdrawals worth $10.5 billion and $830 million respectively, although Asian funds saw net purchases of $290 million. Fund flows: Global equity sector fundsMeanwhile, global bond funds saw net selling of $718 million after $989 million worth of inflows in the previous week. Investors disposed of short- and mid-term bond funds for a 12th straight week, worth $1.68 billion while exiting high yield funds of $247 million.

☆ How to Use ETFs to Create a Fixed-Income Portfolio
▼ + stars: | 2022-11-06 | by ( Ari I. Weinberg | ) www.wsj.com time to read: 1 min

Portfolios that use bond funds for their fixed-income allocations might need an adjustment to survive a rocky market. Surging inflation and corresponding interest-rate increases have left many fixed-income portfolios in shambles this year. Core bond funds, typically the bedrock of a multiasset portfolio, are down 15% to 20%. “It’s very clear that the rate environment in the next 10 years won’t look like the last 10,” says Leland Clemons , founder of ETF issuer BondBloxx Investment Management.

☆ Global equity funds gain inflows for second week in a row
▼ + stars: | 2022-11-04 | by ( ) www.reuters.com time to read: +2 min

Nov 4 (Reuters) - Global equity funds obtained huge inflows in the week ended Nov. 2 as investors were hoping that the U.S. Federal Reserve would consider decelerating the pace of its interest rate hikes, ahead of its policy decision. According to Refinitiv Lipper data, investors purchased a net $13.76 billion worth of global equity funds, marking their biggest weekly net buying since March 23. Fund flows: Global equities, bonds and money marketThe U.S., European, and Asian equity funds, all received inflows worth $10.19 billion, $2.42 billion and $830 million respectively. read moreFund flows: Global equity sector fundsMeanwhile, global bond funds obtained $655 million worth of inflows after witnessing disposals for 10 weeks in a row. Fund flows: EM equities and bondsAmong commodity funds, precious metal funds witnessed outflows for a third week, amounting $1.01 billion, but energy funds gained a second weekly inflow, worth $73 million.

☆ Asia bond funds dump China in favour of cash after high-yield rout
▼ + stars: | 2022-10-31 | by ( Summer Zhen | ) www.reuters.com time to read: +4 min

Many holders of China high yield bonds have seen them trading below 20 cents on the dollar. The in-default bonds of property company Sunac China (1918.HK) maturing in 2025 trade at 6 cents to a dollar. The average return of the top 10 Asia high yield bonds is down more than 30% this year, Morningstar data shows, of which Fidelity Funds' Asian High Yield Fund and UBS's SICAV - Asian High Yield (USD) had shed more than 40% as of Oct. 27. Value Partners’ Greater China High Yield Income Fund was down 37% as of the end of September. While there are select bonds that have upside, China high yield as an asset class is currently “uninvestable", she said.

☆ Global equity funds receive inflows for first time in 10 weeks
▼ + stars: | 2022-10-28 | by ( ) www.reuters.com time to read: +2 min

Oct 28 (Reuters) - Global equity funds attracted money inflows in the week ended Oct. 26, bolstered by expectations the Federal Reserve would slow its pace of rate hikes to counter the economic slowdown. According to Refinitiv Lipper data, investors bought a net $7.8 billion worth of global equity funds in the week, after ditching them in the previous nine weeks. U.S. equity funds obtained $7.9 billion, while Asian equity funds received $2.1 billion. On the other hand, European equity funds faced net sales of $2.3 billion during the week, the data showed. The data showed global money market funds received inflows worth $18.6 billion, its fourth consecutive weekly inflow.

☆ Senior loan ETFs are seeing strong inflows as investors search for yield
▼ + stars: | 2022-10-26 | by ( Natalie Zhang | ) www.cnbc.com time to read: +2 min

Investors looking for yield are turning to exchange-traded funds that track senior bank loans, says a fund manager. One example is the Invesco Senior Loan ETF (BKLN) which follows the market-weighted performance of the 100 largest senior bank loans and has a yield of upward of 3.8%. Senior bank loans are debt securities issued by banks to corporations and they have what's called variable interest rates meaning they adjust periodically with the market. In the last year, the BKLN ETF has gone from steady outflows to strong inflows as investors' inflationary concerns have grown, Anna Paglia, global head of ETFs and indexed strategies at Invesco, told CNBC's "ETF Edge" on Monday. "Now it seems like clients are really looking at that yield story and this fund is the perfect vehicle for that," added Paglia, who oversees the BKLN ETF.

☆ Sell stocks in a bear market rally and look to this alternative, JPMorgan strategist says
▼ + stars: | 2022-10-25 | by ( Ganesh Rao | ) www.cnbc.com time to read: +3 min

But it has also seen multiple weeks where stocks have risen by more than 5% despite slower economic growth expectations. Such bear market rallies, according to Madison Faller, global investment strategist at JPMorgan Private Bank, were well suited for investors to sell stocks ahead of a more significant market fall. Last week, Bank of America also advised clients not to trust the recent market rally as its research pointed toward further declines in the stock market. iShares 0-5 Year TIPS Bond ETF: It has exposure to short-term U.S. Treasury Inflation-Protected Securities (TIPS). iShares 1-5 Year Investment Grade Corporate Bond ETF: It has exposure to U.S. corporate bonds with maturities between one to five years.

☆ Yellen taking steps to enhance Treasury market, boost funds resilience
▼ + stars: | 2022-10-24 | by ( David Lawder | ) www.reuters.com time to read: +3 min

Oct 24 (Reuters) - The U.S. Treasury is taking steps to strengthen the resilience of the Treasury debt market and private money market and bond funds, but the U.S. financial system is functioning well despite elevated global volatility, Treasury Secretary Janet Yellen said on Monday. "Treasury is working with financial regulators to advance reforms that improve the Treasury market's ability to absorb shocks and disruptions, rather than to amplify them," Yellen said. MONEY MARKETS, BOND FUNDSHigher market volatility also could expose vulnerabilities in non-bank financial intermediation, Yellen said. She added that Treasury and financial regulators are working to better monitor leverage in private funds and to "develop policies to reduce the first-mover advantage that could lead to investor runs in money market funds and open-end bond funds." Yellen cited stresses in money market funds during the 2008 financial crisis and again in March 2020 as the reason for the Securities and Exchange Commission's new proposed rules to improve resilience and transparency in the $5 trillion money market sector.

☆ Yellen says taking steps to enhance Treasury market, funds resilience
▼ + stars: | 2022-10-24 | by ( David Lawder | ) www.reuters.com time to read: +2 min

Oct 24 (Reuters) - U.S. Treasury Secretary Janet Yellen said on Monday the U.S. financial system remains resilient amid global volatility, but the Treasury is taking steps to mitigate potential risks in the Treasury market and private money market and bond funds. While we continue to watch for emerging risks, our system remains resilient and continues to operate well through uncertainties," Yellen said. But Yellen added that recent episodes of stress in the Treasury market pointed to the need to take steps to enhance its resilience. "Treasury is working with financial regulators to advance reforms that improve the Treasury market's ability to absorb shocks and disruptions, rather than to amplify them," Yellen said. Higher market volatility also could expose vulnerabilities in non-bank financial intermediation, Yellen said.

☆ Soaring Yields Press Asia’s Junk-Bond Issuers to Seek Funding Elsewhere
▼ + stars: | 2022-10-23 | by ( Matthew Thomas | ) www.wsj.com time to read: 1 min

Rising U.S. interest rates and the surging dollar are creating problems for riskier companies in Asia that had flocked to the U.S. dollar-denominated bond market when yields were much lower. Junk-bond yields in Asia have soared this year following a sharp increase in U.S. Treasury yields, large capital outflows from regional bond funds and higher risk aversion among investors.

☆ U.S. equity funds face outflows for third successive week
▼ + stars: | 2022-10-14 | by ( ) www.reuters.com time to read: +2 min

Oct 14 (Reuters) - U.S. equity funds suffered their third consecutive weekly outflow in the week ended October 12, as stocks were hit by concerns over a recession due to a rise in interest rates and inflation. Refinitiv Lipper data showed that U.S. equity funds faced outflows worth $2.1 billion in the week, after witnessing a combined total net sales of $11.1 billion in the previous two weeks. Register now for FREE unlimited access to Reuters.com RegisterU.S. bond funds also witnessed outflows worth $4.9 billion, the biggest in two weeks, as bonds globally were sideswiped by a rout in British government bonds. U.S. inflation-linked bond funds had outflows worth $417 million, while, U.S. high-yield bond funds had an outflows of $876 million during the week. On the other hand, lower risk U.S. money market funds attracted an inflow of $5.8 billion, while U.S. government bond funds pulled in $3.7 billion.

☆ Analysis: IMF plugs financing gaps as riskier emerging markets face squeeze
▼ + stars: | 2022-10-14 | by ( Jorgelina Do Rosario | ) www.reuters.com time to read: +6 min

Ghana, Egypt, Tunisia and Malawi are all in talks on some type of IMF financing. Countries' debt burdens have risen. Turning to the IMF for financing has been the traditional playbook for smaller, strained countries in times of crisis. A set of new IMF tools should also help funnel more funds to such countries in the short-term. "But IMF does act as an anchor and allows access to a broader set of funding, even if not from the market," said Alexandru-Chidesciuc.

☆ Global equity, bond funds see outflows for eighth successive week
▼ + stars: | 2022-10-14 | by ( ) www.reuters.com time to read: +2 min

Oct 14 (Reuters) - Global equity and bond funds faced outflows for the eighth time in a row in the week ended Oct. 12, Refinitiv Lipper data showed, undermined by worries over a recession as global interest rates surged further. According to the data, investors dumped $7.3 billion worth global equity funds and $14.27 billion worth bond funds. The equity outflows were focused on European equity funds, which witnessed net sales worth $7 billion, while U.S. equity funds had outflows of $2 billion. Register now for FREE unlimited access to Reuters.com RegisterGlobal fund outflowsAmong bond funds, European funds again led with outflows worth $8.8 billion, while U.S. bond funds had an outgo of $4.9 billion. EM flowsAmong commodity funds, precious metal funds had a small inflow of $83.2 million, while energy and industrial metal funds witnessed outflows.

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