U.S. fund investors trim stock, commodity holdings in week -ICI

NEW YORK, June 13 (Reuters) – U.S.
mutual funds and
exchange-traded funds recorded their first overall week of
withdrawals since March, Investment Company Institute (ICI) data
showed on Wednesday.
Cash flowed out of U.
S.-based stock and commodity funds
alike during the week ended June 6, while demand for bond funds
weakened to $1.
4 billion from a $5.4 billion average this year,
the data showed.
Overall, the mutual funds and ETFs tracked by the trade
group posted $4.2 billion in withdrawals.
“The market is caught between a bit of a rock and a hard
place right now,” said Katie Nixon, chief investment officer for
Northern Trust Corp’s wealth management business.
“It’s a battle between the micro picture, which is very
strong, earnings are very strong and look to be very strong into
next year, and macro factors,” from the U.
S. Federal Reserve’s
withdrawal of monetary stimulus to the mushrooming conflict
between the United States and its trading partners.
In an interview published on Wednesday by the newspaper
Handelsblatt, World Trade Organization Director-General Roberto
Azevedo warned that if the trade conflict between the United
States and other countries intensifies, it could negatively
impact the global economy and said there are indications this is
already happening.
An earlier report by Thomson Reuters Lipper unit covering
the same seven-day period showed low-risk money-market funds
took in the nearly $34.
9 billion, the most cash in nearly five
Money funds could be competing for cash with other
safe-haven assets.
Funds invested in commodities, such as gold,
posted $761 million in withdrawals, the weakest demand since
July 2017, according to the ICI.
The following table shows estimated ICI flows for mutual
funds and ETFs (all figures in millions of dollars):
6/6 5/30 5/23 5/16 5/9/2018
Equity -3,651 5,435 3,994 8,394 2,040
Domestic -4,531 4,701 3,352 6,066 1,302
World 880 734 642 2,329 738
Hybrid -1,118 -642 -807 -866 -788
Bond 1,376 2,235 5,206 5,177 2,735
Taxable 727 1,574 5,021 4,727 2,383
Municipal 648 661 185 450 352
Commodity -761 125 -73 -281 242
Total -4,155 7,153 8,320 12,425 4,229

(Reporting by Trevor Hunnicutt; Editing by Dan Grebler)
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