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Title: U.S. equity funds record third weekly outflow in a row

Jul 15, 2022 07:40AM ET

By: AnalysisWatch

For the week ended July 13, U.S. equity funds recorded outflows for the third consecutive week, driven by concerns about economic growth and earnings prospects as companies face higher borrowing costs and lower margins.

According to data from Refinitiv Lipper, U.S. equity funds saw outflows of $1.41 billion, compared to net sales of $5.45 billion the previous week.

Data released this week showed U.S. consumer prices rose faster than economists had forecast. The consumer price index rose 9.1% in the 12 months through June, bolstering the case for more Fed rate hikes.

JPMorgan Chase & Co. and Morgan Stanley both reported lower-than-expected second-quarter profits and warned of an impending economic slowdown on Thursday.

U.S. small-and mid-cap funds saw outflows of $2.38 billion and $81 million, respectively, while large-cap funds saw inflows of $1.98 billion.

Among sector funds, consumer cyclicals, technology, and industrials lost $715 million, $403 million, and $307 million in outflows, respectively, while utilities saw net purchases worth $298 million.

Meanwhile, safer money market funds gained about $10 billion in net purchases for the second week in a row.

According to the data, investors withdrew $705 million from U.S. bond funds after net purchases of $2.72 billion the previous week.

Investors divested $3.32 billion from U.S. short/intermediate investment grade funds, while credit equity funds saw net sales of $1.29 billion for the sixth consecutive week.

U.S. short/intermediate government and Treasury funds, meanwhile, saw net purchases of $1.65 billion, following small outflows the previous week.

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