US equity funds see outflows for fifth successive week

Investors withdrew from US equity funds for a fifth consecutive week in the seven days to August 30, driven by investor risk aversion amid upcoming reports on inflation and non-farm payrolls, reports Reuters.
According to Refinitiv Lipper data, investors pulled a net $4.54 billion from US equity funds. However, the outflow was less than the $11.39 billion net disposals a week ago.
The Commerce Department's report on Thursday, meanwhile, assuaged some concerns, revealing that the PCE price index, which the Fed tracks closely for its inflation target, rose by 3.3 per cent year-on-year in July, meeting expectations.
Investors exited about $2.4 billion worth of equity value funds in their biggest weekly net selling since May 10. Growth funds also booked about $1.68 billion worth of outflows.
US equity sector funds still obtained $484 million in inflows, thanks to significant purchases in metals & mining and tech sectors that drew about $410 million and $329 million, respectively.
US investors, meanwhile, sought safer money market and government bond funds as they drew a net $7.29 billion and $518 million, respectively, in inflows.
US bond funds, however, witnessed a combined net outflow of about $1.26 billion, with short/intermediate investment-grade, inflation-protected, and general domestic taxable fixed income funds losing about $1.89 billion, $1.13 billion, and $530 million, respectively, in net selling.
High-yield bond funds, however, received $1.22 billion in their first weekly inflow since July 19.