US investors cut their equity fund holdings and boosted safer positions in the seven days to Aug. 14 amid persistent concerns over an economic slowdown and recent market volatility.
Investors withdrew a net $8.92 billion from US equity funds in the largest weekly selloff since June 12, while channeling $16.1 billion and $3.35 billion into money market and government bond funds, respectively, according to LSEG data.
Fund investors remained risk-averse amid recent turbulence in risk assets, though benign U.S. inflation data and strong July retail sales have buoyed stocks this week.
In the week to Aug. 14, US large-cap equity funds experienced a net outflow of $6.08 billion, the most in nine weeks, with small-cap, mid-cap, and multi-cap funds also recording outflows of $1.41 billion, $404 million and $72 million, respectively.
Sectoral funds registered their first weekly net inflow in four weeks, gaining $380 million, buoyed by significant inflows of $802 million in utilities and $541 million in financials.
US bond funds attracted $3.55 billion in net purchases, marking their 11th consecutive weekly inflow.
Investors added $1.34 billion to US short-to-intermediate government and treasury funds, and $677 million to short-to-intermediate investment-grade funds. However, they divested $948 million from general domestic taxable fixed income funds and $669 million from loan participation funds.
(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Shounak Dasgupta)