US equity funds attracted significant inflows for the week ended Dec 25, recovering from a prior-week sell-off, buoyed by the so-called “Santa Claus” rally, reported Reuters on Dec 27.
According to LSEG Lipper data, US equity funds gained inflows of US$20.56 billion on a net basis following a nearly US$50 billion worth of net sales in the previous week.
Meanwhile, US money market funds saw substantial interest, drawing a net US$41.72 billion, a sharp reversal from the previous week’s US$27.31 billion in net sales.
US bond funds experienced their second consecutive week of outflows, with investors withdrawing a net US$5.42 billion. Among the segments, US emerging markets debt, short-to-intermediate investment-grade, and municipal debt funds recorded net sales of US$924 million, US$899 million, and US$879 million, respectively.
In contrast, short-to-intermediate government & treasury funds bucked the trend, attracting US$957 million in inflows.
Investors during the week poured investments into US large-cap funds, as they pumped a net US$31.67 billion into these funds, the highest since Oct 2, following US$20.94 billion worth of net sales in the prior week.
Small-cap, mid-cap and multi-cap funds, meanwhile, experienced outflows of US$2.95 billion, US$1.17 billion and US$853 million, respectively.
Sectoral equity funds also witnessed a net US$2.14 billion worth of outflows with healthcare and consumer discretionary, having US$495 million and US$476 million in net sales, leading the way.
