U.S.-based non-domestic stock funds attract 10th week of inflows: Lipper - Metro US

U.S.-based non-domestic stock funds attract 10th week of inflows: Lipper

By Sam Forgione

NEW YORK (Reuters) – Investors poured $6 billion into U.S.-based non-domestic stock funds in the week ended April 15, marking their 10th straight week of inflows into the funds, data from Thomson Reuters’ Lipper service showed on Thursday.

U.S.-based domestic-focused stock funds posted net withdrawals with $5.8 billion, their third straight week of outflows, Lipper said.

Tom Roseen, head of research services at Lipper, said investors are shunning domestic portfolios because many are anticipating a poor first-quarter earnings season and a slowdown in U.S. economic growth.

Roseen said after the Federal Reserve minutes were released that there were a few hawks indicating they still think an interest rate increase could come as soon as June.

“With those items in the background, the underperforming European markets look attractive especially with the European Central Bank’s successful role with its quantitative easing program,” he said.

U.S.-based European stock funds saw their 12th straight week of inflows, according to Lipper data. It said Japanese stock funds attracted $644 million of inflows, their 10th straight week of inflows in the latest week.

The fierce hunt for yield boosted bond funds again.

U.S. based taxable bond funds had $1.6 billion of inflows in the week ended April 15, their fifth straight week of inflows, Lipper said.

High-yield bond funds attracted $792 million to mark their fourth straight week of inflows, while investment-grade bond funds posted $384 million in outflows to mark their first outflows of 2015.

Money market funds posted $31 billion in withdrawals to mark their biggest outflows since April 2014.

“I do think that Uncle Sam is creating a little havoc in the money market arena,” Roseen said. “In addition, many corporations use money markets to park money that might be used to cover other payable obligations, quarterly funding of 401ks, normal bills and the like.”

(Reporting by Sam Forgione; Editing by Jennifer Ablan and Gunna Dickson)

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