(Reuters) – U.S. equity funds secured their biggest inflow in nearly two months in the week to Aug. 18, boosted by optimism over corporate profits and a rebound in the U.S. economy.
Data from Lipper showed U.S. equity funds lured inflows of $13.28 billion in the week, compared with just $2.4 billion in the previous week.
U.S. value funds attracted $3.88 billion, the biggest in five months, while U.S. growth funds faced outflows worth $2.42 billion.
Graphic: Fund flows into U.S. equities bonds and money market funds, https://fingfx.thomsonreuters.com/gfx/mkt/mopannlobva/Fund%20flows%20into%20U.S.%20equities%20bonds%20and%20money%20market.jpg
“Growth equity funds redemption heightened, resulting in a reversal to ‘value over growth’ for the first time since June,” said Jefferies in a report.
U.S. large-cap funds took the lion’s share of inflows, obtaining $7.74 billion, while mid-cap and small-cap funds witnessed outflows.
U.S. stock indexes touched a fresh peak earlier this week, driven by positive earnings. However, they dropped later deterred by weak retail sales data.
Meanwhile, U.S. bond funds saw inflows worth $6.07 billion, though it was 25% less than the previous week.
Graphic: Fund flows into U.S. growth and value funds, https://fingfx.thomsonreuters.com/gfx/mkt/znvneekmopl/Fund%20flows%20into%20U.S.%20growth%20and%20value%20funds.jpg
Graphic: Flows into U.S. equity sector funds, https://fingfx.thomsonreuters.com/gfx/mkt/zdpxoonggvx/Flows%20into%20U.S.%20equity%20sector%20funds.jpg
U.S. short and intermediate investment-grade funds pulled a net $3.3 billion, while U.S. municipal and government debt funds received $1.5 billion.
U.S. money market funds also received inflows worth $10.8 billion, marking a second consecutive inflow.
Graphic: Flows into U.S. bond funds, https://fingfx.thomsonreuters.com/gfx/mkt/gdpzyydagvw/Flows%20into%20U.S.%20bond%20funds.jpg
(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Steve Orlofsky)