U.S. money market funds see biggest weekly inflow in 13 months -Lipper

FILE PHOTO: Illustration photo of a U.S. five dollar note
FILE PHOTO: A U.S. five dollar note is seen in this illustration photo June 1, 2017. REUTERS/Thomas White/Illustration

May 28, 2021

(Reuters) – Investment flows into U.S. money market funds surged to the highest in over a year in the week to May 26, on caution as investors awaited U.S. data expected to offer clues on inflation.

Refinitiv Lipper data showed U.S. money market funds drew in a net $66.6 billion in the week, the biggest amount since April 2020, with investors concerned about a rise in inflation levels and the impact on the direction of U.S. monetary policy.

Meanwhile, U.S. equity funds attracted a net $5.06 billion, as stocks rallied somewhat after U.S. Federal Reserve officials reaffirmed a dovish monetary policy stance.

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

Among equities, investors purchased value funds worth $2.4 billion, while growth funds faced outflows worth $859 million.

U.S. bond funds saw net purchases of $4.82 billion, the highest in three weeks.

Investors bought $2.35 billion in U.S. taxable funds and $1.31 billion in municipal bond funds.

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

Graphic – Fund flows into U.S. growth and value funds: https://fingfx.thomsonreuters.com/gfx/mkt/yzdvxmyaxpx/Fund%20flows%20into%20U.S.%20growth%20and%20value%20funds.jpg

U.S. inflation-protection funds also had an inflow of $641 million, which was their fourth successive inflow.

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

(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Hugh Lawson)