U.S. equity funds continue to draw net inflows on growth optimism - Lipper

FILE PHOTO: U.S. dollars are counted by a banker at a bank in Westminster, Colorado November 3, 2009.  REUTERS/Rick Wilking
FILE PHOTO: U.S. dollars are counted by a banker at a bank in Westminster, Colorado November 3, 2009. REUTERS/Rick Wilking

(Reuters) - U.S equity funds continued to record net inflows in the week to June 30, with the country's stock markets touching fresh highs on expectations of a faster recovery from the pandemic and higher numbers of vaccinated people in the United States.

Data from Refinitiv Lipper showed U.S. equity funds attracted a net $4.8 billion in the week, the third consecutive inflow.

However, the amount was lower than in the previous week with investors cautious ahead of this week's key nonfarm jobs report.

Graphic: Fund flows into U.S. equities bonds and money market - https://fingfx.thomsonreuters.com/gfx/mkt/azgpoqaaxpd/Fund%20flows%20into%20U.S.%20equities%20bonds%20and%20money%20market.jpg

U.S. large-cap funds attracted a net inflow of about $7 billion in the week but mid- and small-cap funds saw net outflows, the data showed.

U.S. value funds also recorded outflows for a second consecutive week, underscoring the shift in investor sentiment after the Federal Reserve's hawkish tilt last month.

Investors had preferred value stocks earlier this year, buoyed by optimism over economic recovery and higher valuations of growth funds after their record run last year.

Graphic: Flows into U.S. equity sector funds - https://fingfx.thomsonreuters.com/gfx/mkt/azgvoqanxvd/Flows%20into%20U.S.%20equity%20sector%20funds.jpg

Graphic: Fund flow into U.S. growth and value funds - https://fingfx.thomsonreuters.com/gfx/mkt/oakpedeokvr/Fund%20flow%20into%20U.S.%20growth%20and%20value%20funds.jpg

U.S. bond funds scored their biggest net inflows in 12 weeks, at $11.2 billion, with taxable bond funds attracting $9.4 billion and municipal bond funds $1.9 billion.

Investors also purchased U.S. short and intermediate investment-grade funds worth $2.8 billion, the biggest inflow in four weeks.

Meanwhile, U.S. money market funds witnessed net outflows for a fourth consecutive week, worth $16.8 billion.

Graphic: Flows into U.S. bond funds - https://fingfx.thomsonreuters.com/gfx/mkt/jbyprzmqgpe/Flows%20into%20U.S.%20bond%20funds.jpg

(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Kirsten Donovan)

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