US fund investors move into overseas equity

Wall_streetUS investors have increased their investment in non-domestic equity funds in the past week as US stocks were rattled by “Trump fears”. Non-domestic equity mutual funds saw new money of $1.3 billion, accounting for all of the net inflows for the equity group, while domestic equity funds shed $436 million of assets, Thomson Reuters Lipper data shows. “It was a rough week for the equity markets as investors grew impatient for the Donald Trump campaign-promised tax cuts and became fearful that the administration was about to get bogged down in the quagmire of healthcare legislation,” said Patrick Keon of Thomson Reuters Lipper. The figures are for the week ended Wednesday (March 22), during which time the S&P 500 Index and the Dow Jones Industrial Average lost 1.54% and 1.38%, respectively. “The Trump fears hit home” on Tuesday this week when the Dow fell 237.85 points and the S&P 500 fell 29.45 points, their worst one-day losses since prior to the election, said Keon – though both indices were still up 5% for the year to date. At the top level, both mutual funds and ETFs suffered their second straight week of net outflows across asset classes, with $9.8 billion leaving funds. Taxable bond funds took in over $8.3 billion and municipal bond funds saw inflows of $173 million. Overall, equity mutual funds saw a “trend reversal” by raising $843 million of net new money, while equity ETFs had net outflows of $1.9 billion. ©2017 funds europe

Sponsored Profiles

SPONSORED FEATURE: Alternative thinking

Mar 16, 2017

Portfolio Manager Davide Cataldo discusses the results of the Pioneer Investments’ survey on liquid alternatives and how investors can be encouraged to increase their allocation.

SPONSORED FEATURE: Interest rate risk hedging: Swapping to other options

Mar 16, 2017

Heightened margin requirements for cleared and uncleared OTC derivatives pose a challenge for legitimate hedging activities and are driving financial institutions to explore alternative hedging...

SPONSORED FEATURE: Why blockchain could be the fund industry’s next Ford Model T

Mar 16, 2017

Blockchain aims to radically change the way investors can access funds, says Olivier Portenseigne, Managing Director and Chief Commercial Officer of Fundsquare.

SPONSORED FEATURE: Open architecture: In need of protection

Mar 16, 2017

Greater efficiency must be embraced to ensure regulatory changes do not destroy choice for fund buyers, says Bernard Tancré of Clearstream.

Executive Interviews

INTERVIEW: Finding managers that can (and do)

Apr 18, 2017

Fabrice Kremer, a fund selector at Banque de Luxembourg Investments, has berated fundamental managers for failing to beat indices, but he remains committed to active funds. He speaks to Nick...

JERSEY INTERVIEW: ‘A steady sort of place’

Mar 21, 2017

The chief executive of Jersey Finance is keen to portray the island as a stable, trustworthy jurisdiction. He talks to George Mitton.

Roundtables

ROUNDTABLE: The issue is perception

Mar 21, 2017

Our panel discuss tax transparency, the elegance of private placement and why Jersey could do more to promote itself. Chaired by Tom Cowsill in Saint Helier.

ASSET SERVICING ROUNDTABLE: Under pressure

Mar 07, 2017

Funds Europe speaks to leading Luxembourg industry figures about the growing regulatory demands on asset servicers and how to remain profitable in spite of major investments in technology.