360° Coverage : Investors Dump U.S. Equity Funds, Shift Back Into Bonds

2 Updates
Investors Dump U.S. Equity Funds, Shift Back Into Bonds

Investors Dump U.S. Equity Funds, Shift Back Into Bonds

Feb 7 2014, 5:14pm CST | by

U.S. investors sold mightily out of equity funds in the first week of February and are rotating back into bonds, the fund tracking firm EPFR Global said on Friday. Institutional redemptions from...

Filed under: news

 
 
 

31 weeks ago

Investors Dump U.S. Equity Funds, Shift Back Into Bonds

Feb 7 2014, 5:14pm CST | by

U.S. investors sold mightily out of equity funds in the first week of February and are rotating back into bonds, the fund tracking firm EPFR Global said on Friday.

Institutional redemptions from EPFR Global-tracked U.S. equity funds and commitments to U.S. bond funds both set new records in dollar terms going into February as markets around the world continue to struggle with the shift in monetary policy, China’s slower growth and the cautious tone of the latest corporate earnings forecasts.

EPFR said this “mini-rotation” by institutional investors meant a new inflow record for all bond funds and a new outflow record for all equity funds during the week ending Feb. 5.  In all, outflows from all equity funds totaled $28.3 billion, with emerging markets equity funds accounting for a fifth of that total. Meanwhile, investors poured a net $14.7 billion of fresh money into bond funds.

When measured in percentage of assets under management terms the flows into bond funds were the biggest since early second quarter 2010 and the redemptions from equity saw the largest sell off since the third quarter of the same year. Institutional commitments to all bond funds, in these terms, hit levels last seen in the first quarter of 2006, EPFR said.

Outflows from U.S. equity funds during the first week of February dragged the overall number for all EPFR Global-tracked developed market equity funds to its lowest level since the week ending June 25, 2008, when net redemptions hit $23.7 billion.

Bonds are definitely back, thanks to talk of Fed tapering. But that depends on who is issuing the debt.

Flows into EPFR Global-tracked bond funds rose during the week ending February 5  with Treasury bond funds attracting fresh institutional commitments.  However, investors continued to sell Asian and emerging market  bond funds.  Plus a weekly outflow of $1.2 billion was registered in high yield funds in general. With the weak growth and talk of deflation putting European central banks under pressure to loosen monetary policy, flows into European bond funds hit a 40 week high.

Source: Forbes Business

 
Update
2

2 weeks ago

Khazanah throws MAS RM6b lifeline

Aug 29 2014 5:01pm CDT | Source: Business Times Singapore

August 30, 2014 1:15 AMKHAZANAH Nasional will inject RM6 billion (SS$2.4 billion) over three years to resuscitate loss-making Malaysia Airlines (MAS) under a recovery plan that includes even an Act of Parliament. Other key moves are migrating its operations, assets and liabilities to a new ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 
Update
1

2 weeks ago

MAS posts loss of RM307m for Q2

Aug 28 2014 5:00pm CDT | Source: Business Times Singapore

August 29, 2014 1:13 AMMALAYSIA Airlines (MAS) registered a loss of RM307 million (S$122 million) for the second quarter to end-June, but warned of worse to come in the second half when the "full financial impact of the double tragedies of MH3 ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

NASA to make major announcement about spacecraft contracts
Washington, Sep 17 (IANS) US space agency NASA said Tuesday it will make a "major announcement" regarding the awarding of contracts to build commercial spaceships that will send the country's astronauts to space soil by 2017.
 
 
Chip in to enhance links, president tells Indians in Vietnam
Ho Chi Minh City, Sep 16 (IANS) The Indian diaspora in Vietnam can play a "significant role" as a "bridge" in deepening relations between the two countries, President Pranab Mukherjee said Tuesday.
 
 
Ho Chi Minh City's rise as economic hub marvellous: President
Ho Chi Minh City, Sep 16 (IANS) Lauding the perseverance and success of the people of Vietnam, President Pranab Mukherjee Tuesday expressed admiration at how Ho Chi Minh City has transformed into a prosperous regional economic hub.
 
 
Modi government improved economy, India's global image: President
Ho Chi Minh City, Sep 16 (IANS) In a departure from custom, President Pranab Mukherjee Tuesday largely abandoned his prepared speech to the Indian community in Vietnam and instead extolled the Narendra Modi government for its steps to improve the economy and burnish India's global image.
 
 
 

Latest from the Network

Spanish minister warns against Catalonia independence vote
Madrid, Sep 17 (IANS) Spanish Minister of Foreign Affairs Jose Manuel Garcia-Margallo warned that if Catalonia region continues with plans to hold an independence referendum Nov 9, the regions status as an autonomous...
Read more on Politics Balla
 
Men are pigs: Kelly Brook
London, Sep 17 (IANS) Actress-model Kelly Brook targets at her ex-boyfriends Billy Zane and Jason Statham again by branding them as "pigs". The "Piranha 3D" star released her tell-all memoir "Close Up" earlier this...
Read more on Celebrity Balla
 
Dutch Supreme Court upholds sentence in child abuse case
The Hague, Sep 17 (IANS) Dutch Supreme Court Tuesday upheld the 19 years jail sentence of a man, who abused 67 young children in a child care centre. In April last year Robert M. was sentenced to 19 years in prison...
Read more on Politics Balla
 
Kate Moss is Kristin Cavallari's style icon
Los Angeles, Sep 17 (IANS) Reality TV star Kristin Cavallari admires Supermodel Kate Moss' "effortless" dressing and describes her as the "ultimate" style icon. The former "The Hills" star, who gave birth to her...
Read more on Celebrity Balla
 
NASA to make major announcement about spacecraft contracts
Washington, Sep 17 (IANS) US space agency NASA said Tuesday it will make a "major announcement" regarding the awarding of contracts to build commercial spaceships that will send the country's astronauts to space soil...
Read more on Apple Balla
 
US says it wants India to have good relations with China too
Washington, Sep 16 (IANS) Ahead of Chinese President Xi Jinping's visit to India, the US says it has a very broad relationship with India and wants New Delhi to have good relationships with all the countries in the...
Read more on Politics Balla
 
22 Palestinians arrested on suspicion of rioting
Jerusalem, Sep 16 (IANS) Jerusalem police and border patrol officers have arrested 22 Palestinians on suspicion of rioting in east Jerusalem in recent days, Israeli police said in a statement Tuesday. Among the...
Read more on Politics Balla
 
Iraqi troops retake villages, US jets pound IS positions (Roundup)
Baghdad, Sep 16 (IANS) Iraqi security forces Tuesday recaptured several villages in heavy clashes with extremist insurgent groups, while US warplanes expanded their airstrikes and pounded Islamic State militants near...
Read more on Politics Balla
 
London's Muslims call for peace after beheading of Briton by IS
London, Sep 16 (IANS/RAY) London's Muslims are fearful of a backlash from indigenous Britons following the beheading of British national David Haines in West Asia by militants of the Islamic State (IS) terrorist group...
Read more on Politics Balla
 
Iggy Azalea's ex-boyfriend owns the rights to alleged sex tape?
Iggy Azalea's ex-boyfriend claims she indirectly gave him permission to release and market their alleged sex tape. Hefe Wine, who also previously managed the 'Fancy' hitmaker, says she signed a contract in 2009 giving...
Read more on Celebrity Balla