China to scrap foreign investment quotas to attract more money into its stock, bond markets

Investors watch the electronic board at a stock exchange hall on February 11, 2019 in Chengdu, Sichuan Province of China. China’s foreign exchange regulator said on Tuesday that it had decided to scrap quota restrictions on two major inbound investment schemes, as a weakening yuan and rising outflows prompt Beijing to seek to attract more foreign capital. It said the move would “make it much more convenient for overseas investors to participate in China’s domestic financial markets, making China


Investors watch the electronic board at a stock exchange hall on February 11, 2019 in Chengdu, Sichuan Province of China. China’s foreign exchange regulator said on Tuesday that it had decided to scrap quota restrictions on two major inbound investment schemes, as a weakening yuan and rising outflows prompt Beijing to seek to attract more foreign capital. It said the move would “make it much more convenient for overseas investors to participate in China’s domestic financial markets, making China
China to scrap foreign investment quotas to attract more money into its stock, bond markets Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-11
Keywords: news, cnbc, companies, quotas, yuan, capital, bond, investment, money, stock, attract, markets, qfii, china, investors, overseas, outflows, scrap, foreign, exchange, chinas


China to scrap foreign investment quotas to attract more money into its stock, bond markets

Investors watch the electronic board at a stock exchange hall on February 11, 2019 in Chengdu, Sichuan Province of China.

China’s foreign exchange regulator said on Tuesday that it had decided to scrap quota restrictions on two major inbound investment schemes, as a weakening yuan and rising outflows prompt Beijing to seek to attract more foreign capital.

While underlining China’s thirst for overseas funding as its economy slows amid a debilitating trade war with the United States, the move also appears largely symbolic, as two-thirds of the existing quotas remain unused.

China’s State Administration of Foreign Exchange (SAFE) would remove quotas on the dollar-dominated qualified foreign institutional investor (QFII) scheme and its yuan-denominated sibling, RQFII, it said in a statement on its website.

It said the move would “make it much more convenient for overseas investors to participate in China’s domestic financial markets, making China’s bond and stock markets more broadly accepted by international markets.”

The removal of quotas comes amid an escalating Sino-U.S. trade war that threatens growth in the world’s second-biggest economy.

Beijing hopes that foreign capital inflows could help to offset rising outflows and lend support to its yuan, which has dropped to its lowest levels against the U.S. dollar since the onset of the global financial crisis in 2008.

Inflows could also help bolster China’s balance of payments, as some analysts fear the country is slipping dangerously towards twin deficits in its fiscal and current accounts.

The removal “is a clear signal that policymakers want to encourage capital inflows,” wrote Win Thin, Global Head of Currency Strategy at Brown Brothers Harriman.

“The corollary is that they are still very worried about capital outflows and so will make sure to avoid any steps that might increase them,” he said.

China in January doubled the QFII quota to $300 billion, but only $111.4 billion of the limit had been used by foreign investors by the end of August.

China’s securities regulator also published draft rules earlier this year that would combine the QFII and RQFII programmes while also simplifying access for overseas investors.


Company: cnbc, Activity: cnbc, Date: 2019-09-11
Keywords: news, cnbc, companies, quotas, yuan, capital, bond, investment, money, stock, attract, markets, qfii, china, investors, overseas, outflows, scrap, foreign, exchange, chinas


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Morgan Stanley’s rich clients withdrew a surprising amount from accounts to pay their taxes

Signage is displayed outside Morgan Stanley & Co. headquarters in the Times Square neighborhood of New York. Morgan Stanley’s rich clients may have gotten surprised by their tax bills this year. Morgan Stanley had “greater-than-expected deposit outflows due in part to tax payments,” Pruzan told analysts during a Thursday call. Rich clients liquidate some investments every year to cover their tax bill, so presumably this was higher than what Morgan Stanley has seen in previous years. That has wid


Signage is displayed outside Morgan Stanley & Co. headquarters in the Times Square neighborhood of New York. Morgan Stanley’s rich clients may have gotten surprised by their tax bills this year. Morgan Stanley had “greater-than-expected deposit outflows due in part to tax payments,” Pruzan told analysts during a Thursday call. Rich clients liquidate some investments every year to cover their tax bill, so presumably this was higher than what Morgan Stanley has seen in previous years. That has wid
Morgan Stanley’s rich clients withdrew a surprising amount from accounts to pay their taxes Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-18  Authors: hugh son
Keywords: news, cnbc, companies, property, high, deposit, taxes, rich, morgan, outflows, withdrew, accounts, stanley, tax, clients, surprising, stanleys, higher, pay


Morgan Stanley's rich clients withdrew a surprising amount from accounts to pay their taxes

Signage is displayed outside Morgan Stanley & Co. headquarters in the Times Square neighborhood of New York.

Morgan Stanley’s rich clients may have gotten surprised by their tax bills this year.

The bank’s wealth management business was hit by an unexpectedly high outflow of deposits in the second quarter, which covers the April tax filing season, according to Chief Financial Officer Jonathan Pruzan.

Morgan Stanley had “greater-than-expected deposit outflows due in part to tax payments,” Pruzan told analysts during a Thursday call. “We saw about $10 billion of outflows in the bank deposit program, some from larger tax payments.”

Rich clients liquidate some investments every year to cover their tax bill, so presumably this was higher than what Morgan Stanley has seen in previous years. The likely culprit: Under the Trump administration’s 2017 tax reform, the deduction for state income, sales and property taxes was capped at $10,000. That has widely been perceived as causing higher taxes for people living in New York, New Jersey and California, states that happen to have high property taxes and a disproportionate share of wealthy Americans.


Company: cnbc, Activity: cnbc, Date: 2019-07-18  Authors: hugh son
Keywords: news, cnbc, companies, property, high, deposit, taxes, rich, morgan, outflows, withdrew, accounts, stanley, tax, clients, surprising, stanleys, higher, pay


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Goldman Sachs: Investors need to get back to stock picking

With the S&P 500 now 17 percent off its low, investors should turn to picking individual stocks to capture the best stock market returns, according to Goldman Sachs stock strategists. “We forecast a stable macro environment in the near-term, characterized by steady US economic activity and a patient Fed, which we believe has been priced in the market,” the Goldman strategists wrote. Goldman strategists constructed a list of stocks that have those high ‘dispersion scores,’ meaning stocks that are


With the S&P 500 now 17 percent off its low, investors should turn to picking individual stocks to capture the best stock market returns, according to Goldman Sachs stock strategists. “We forecast a stable macro environment in the near-term, characterized by steady US economic activity and a patient Fed, which we believe has been priced in the market,” the Goldman strategists wrote. Goldman strategists constructed a list of stocks that have those high ‘dispersion scores,’ meaning stocks that are
Goldman Sachs: Investors need to get back to stock picking Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-13  Authors: patti domm, shannon stapleton
Keywords: news, cnbc, companies, investors, wrote, sachs, stocks, market, need, dispersion, returns, strategists, goldman, high, outflows, picking, stock


Goldman Sachs: Investors need to get back to stock picking

With the S&P 500 now 17 percent off its low, investors should turn to picking individual stocks to capture the best stock market returns, according to Goldman Sachs stock strategists.

Stock-picking opportunities are most plentiful among stocks in the consumer discretionary, communications serivces and health care sectors. They highlight stocks like Monster Beverage, WellCare Health Plans, Incyte, Twitter and NVIDIA.

The stock market’s move higher since the December low has been a ‘macro’ trade, where the whole market rose, defensives lagged and cyclicals led the way. As a result, stocks have become extremely correlated to each other and the market. Now at the 94th percentile, the correlation is the fourth largest on record, and Goldman recommends a list of stocks that have a high “dispersion” or are bucking the trend.

“We forecast a stable macro environment in the near-term, characterized by steady US economic activity and a patient Fed, which we believe has been priced in the market,” the Goldman strategists wrote. They expected a limited move to 2,750 by midyear, but the strategists expect a move to 3,000 on the S&P 500 by year end.

So near term, gains should be capped, and the strategists expect the market to be flat for the next three to six months.That means stock pickers could fair better than those that buy the whole market or even sector ETFs.

“We have seen nascent signs of this rotation to ‘alpha’ with ETF outflows that have exceeded mutual fund outflows. Consistent with the ongoing transition from active to passive, ETFs saw inflows throughout much of 2018, while mutual funds experienced substantial outflows,” they wrote. But during the month of January, as stocks gained 8 percent, investors dumped ETFs, and outflows swelled to $32 billion, compared with just $8 billion leaving mutual funds.

Goldman strategists constructed a list of stocks that have those high ‘dispersion scores,’ meaning stocks that are driven more by micro factors than are associated with big macro moves.

“Stocks with high dispersion scores are more likely to have heightened responses to idiosyncratic news and present the best alpha generation opportunities,” the Goldman strategists wrote. “Importantly, high dispersion scores do not necessarily suggest outsized positive returns alone, but rather returns that deviate most from market returns in either direction.”

Included on Goldman’s list were Advanced Micro Devices, UnderArmour, United Continental, Newmont Mining, Best Buy, Activision Blizzard, Gap, Nordstrom, Newell Brands and Dish Network.


Company: cnbc, Activity: cnbc, Date: 2019-02-13  Authors: patti domm, shannon stapleton
Keywords: news, cnbc, companies, investors, wrote, sachs, stocks, market, need, dispersion, returns, strategists, goldman, high, outflows, picking, stock


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Investors pulled a record $143 billion out of active funds during December’s plunge

According to data from Morningstar out Thursday, actively managed mutual funds experienced outflows of nearly $143 billion in December, their worst month ever. Passive funds reeled in nearly $60 billion in December alone, according to Morningstar. Among active strategies, bond funds bled the most in December with $44.3 billion outflows, the data showed. “This is notable because taxable-bond funds had been a rare bright spot for active managers. But as investors pulled money in 2018’s fourth quar


According to data from Morningstar out Thursday, actively managed mutual funds experienced outflows of nearly $143 billion in December, their worst month ever. Passive funds reeled in nearly $60 billion in December alone, according to Morningstar. Among active strategies, bond funds bled the most in December with $44.3 billion outflows, the data showed. “This is notable because taxable-bond funds had been a rare bright spot for active managers. But as investors pulled money in 2018’s fourth quar
Investors pulled a record $143 billion out of active funds during December’s plunge Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-17  Authors: yun li, michael nagle, bloomberg, getty images
Keywords: news, cnbc, companies, worst, passive, active, pulled, trillion, investors, taxablebond, strategies, decembers, outflows, plunge, record, 143, index, funds, billion


Investors pulled a record $143 billion out of active funds during December's plunge

Last month was one for the Wall Street history books — not only was it stocks’ worst December since the Great Depression, but it now appears to be a pivotal moment when investors really gave up on active management.

According to data from Morningstar out Thursday, actively managed mutual funds experienced outflows of nearly $143 billion in December, their worst month ever. The record exodus brought the yearly outflows to $301 billion, just shy of 2016’s $320 billion.

“December outflows spanned asset classes, with taxable-bond funds faring worst. [Active] large-growth and large-value funds continue to get hit the hardest, likely losing assets to passively managed, core large-blend funds,” Morningstar senior analyst Kevin McDevitt said in a note on Thursday.

Investors, at the same time, fled to cheaper passive strategies amid the brutal sell-off, as the higher expense of active management put extra pressure on their returns. Passive funds reeled in nearly $60 billion in December alone, according to Morningstar.

Among active strategies, bond funds bled the most in December with $44.3 billion outflows, the data showed.

“This is notable because taxable-bond funds had been a rare bright spot for active managers. But as investors pulled money in 2018’s fourth quarter, it came almost entirely from active taxable-bond offerings … while they were essentially flat for passive vehicles,” McDevitt said.

Passive strategies continue to gain popularity as the market for index funds has reached $6 trillion, while the market for exchange-traded funds has ballooned to $3.6 trillion in assets.

The indexing industry on Wednesdaylost one of its most prominent figures. Jack Bogle, founder of Vanguard Group and creator of the world’s first index mutual fund, the First Index Investment Trust, died at age 89.


Company: cnbc, Activity: cnbc, Date: 2019-01-17  Authors: yun li, michael nagle, bloomberg, getty images
Keywords: news, cnbc, companies, worst, passive, active, pulled, trillion, investors, taxablebond, strategies, decembers, outflows, plunge, record, 143, index, funds, billion


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Stocks could struggle after record outflows, history shows

Investors just pulled money out of stocks at a record pace and, if history is any indication, equities could struggle before recovering. Such strong outflows are typically seen as a contrarian indicator to buy back into stocks, but it could take some time for equities to start climbing back. Using Kensho Analytics, CNBC found the median gain for the S&P 500 one week after these outflows is just 0.4 percent. Stocks start turning significantly higher after three months, the analysis shows. The S&P


Investors just pulled money out of stocks at a record pace and, if history is any indication, equities could struggle before recovering. Such strong outflows are typically seen as a contrarian indicator to buy back into stocks, but it could take some time for equities to start climbing back. Using Kensho Analytics, CNBC found the median gain for the S&P 500 one week after these outflows is just 0.4 percent. Stocks start turning significantly higher after three months, the analysis shows. The S&P
Stocks could struggle after record outflows, history shows Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-14  Authors: fred imbert, brendan mcdermid
Keywords: news, cnbc, companies, sp, outflows, pulled, struggle, stocks, worst, shows, record, history, median, dec, start, trade


Stocks could struggle after record outflows, history shows

Investors just pulled money out of stocks at a record pace and, if history is any indication, equities could struggle before recovering.

Data compiled by the Lipper team at Refinitiv showed investors pulled $46.2 billion from U.S. equity mutual funds and exchange-traded funds between Dec. 5 and Dec. 12. This is the biggest one-week outflow on record, according to Lipper.

Such strong outflows are typically seen as a contrarian indicator to buy back into stocks, but it could take some time for equities to start climbing back.

CNBC looked at the 10 largest weekly outflow numbers over the past 10 years. Using Kensho Analytics, CNBC found the median gain for the S&P 500 one week after these outflows is just 0.4 percent. Returns a month after are not great either, with the median coming in at 0.3 percent.

Stocks start turning significantly higher after three months, the analysis shows. The S&P 500’s three-month median return after these outflows tops 3 percent. The index’s median gain six months after outflows hits 4 percent.

Investors are draining money from stocks as Wall Street grapples with uncertainty around the U.S.-China trade war and fears over a possible global economic slowdown.

The U.S. and China are working toward striking a permanent deal on trade after agreeing Dec. 1 to a 90-day truce on tariffs. However, experts fear the grace period will not be enough to put together a deal that addresses the issues concerning both China and the U.S.

Meanwhile, the Chinese government reported Friday November industrial output numbers that were the worst in four years alongside its worst retail sales growth data since 2003. This led to a sharp sell-off in U.S. stocks on Friday, with the Dow Jones Industrial Average falling more than 500 points at its session low.


Company: cnbc, Activity: cnbc, Date: 2018-12-14  Authors: fred imbert, brendan mcdermid
Keywords: news, cnbc, companies, sp, outflows, pulled, struggle, stocks, worst, shows, record, history, median, dec, start, trade


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Investors betting defensive stock market plays will win as they sold tech, financials

Investors pulled money from both stock and bond funds in the past week, and shifted money within U.S. equities to health care and out of tech and financials. According to Bank of America Merrill Lynch, investors pulled $3.6 billion out of equity mutual funds and ETFs, with $2.6 billion out of U.S. stocks. But as investors took a defensive posture on stocks, they also dumped government debt, with net outflows of $1.5 billion from Treasurys and government bonds, the biggest since December 2016. At


Investors pulled money from both stock and bond funds in the past week, and shifted money within U.S. equities to health care and out of tech and financials. According to Bank of America Merrill Lynch, investors pulled $3.6 billion out of equity mutual funds and ETFs, with $2.6 billion out of U.S. stocks. But as investors took a defensive posture on stocks, they also dumped government debt, with net outflows of $1.5 billion from Treasurys and government bonds, the biggest since December 2016. At
Investors betting defensive stock market plays will win as they sold tech, financials Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-08-17  Authors: patti domm, drew angerer, getty images news, getty images
Keywords: news, cnbc, companies, win, billion, betting, plays, market, biggest, million, financials, past, net, stocks, sold, defensive, week, investors, outflows, tech, stock


Investors betting defensive stock market plays will win as they sold tech, financials

Investors pulled money from both stock and bond funds in the past week, and shifted money within U.S. equities to health care and out of tech and financials.

According to Bank of America Merrill Lynch, investors pulled $3.6 billion out of equity mutual funds and ETFs, with $2.6 billion out of U.S. stocks. But as investors took a defensive posture on stocks, they also dumped government debt, with net outflows of $1.5 billion from Treasurys and government bonds, the biggest since December 2016. Overall, bonds lost a total of $2.3 billion.

Bank of American Merrill Lynch noted that while investors dumped U.S. stocks, its monthly fund managers survey showed the biggest U.S. equity overweight since January 2015.

But investors appear to continue positioning for the seasonal market storms that could take place in late summer and early fall with August and September among the choppiest month for stocks.

Health-care stocks saw inflows of $800 million, giving the sector a total of $5.5 billion in inflows for the past three months. The S&P health-care sector has been the top performer so far this quarter, and is up 8.6 percent the end of June.

At the same time, investors shaved tech holdings by a net $500 million, the biggest tech outflow since the February sell-off, BofA said. There were also big flows from financial stocks, with a net outflow of $1.2 billion.

BofA notes that the top five performing sectors for the past three months have all been defensive — staples, utilities, REITs, health care and telecommunications.

Investors also continued to exit European stocks, for a 23rd week, with outflows of $2.9 billion. Emerging market outflows were small, at $200 million. Investors also sold gold, down $500 million.


Company: cnbc, Activity: cnbc, Date: 2018-08-17  Authors: patti domm, drew angerer, getty images news, getty images
Keywords: news, cnbc, companies, win, billion, betting, plays, market, biggest, million, financials, past, net, stocks, sold, defensive, week, investors, outflows, tech, stock


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Global stocks see biggest loss of investor cash since the financial crisis

As the emerging market and non-U.S. trade has unwound and fears have intensified over a trade war, investors have fled global stocks and returned to the U.S., where funds have seen $6.3 billion in inflows. The iShares emerging market ETF has seen $5.4 billion in outflows in June, the most of any fund, according to ETF.com. “U.S. dollar strength and persistent underperformance seem to be driving fund investors away from non-U.S. equities,” TrimTabs said in a note. “Cumulative flows for the year [


As the emerging market and non-U.S. trade has unwound and fears have intensified over a trade war, investors have fled global stocks and returned to the U.S., where funds have seen $6.3 billion in inflows. The iShares emerging market ETF has seen $5.4 billion in outflows in June, the most of any fund, according to ETF.com. “U.S. dollar strength and persistent underperformance seem to be driving fund investors away from non-U.S. equities,” TrimTabs said in a note. “Cumulative flows for the year [
Global stocks see biggest loss of investor cash since the financial crisis Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-06-28  Authors: jeff cox, photographer, collection, getty images
Keywords: news, cnbc, companies, loss, outflows, biggest, recent, cash, stocks, seen, trade, thanks, financial, investor, global, crisis, market, investors, inflows, emerging, funds


Global stocks see biggest loss of investor cash since the financial crisis

As the emerging market and non-U.S. trade has unwound and fears have intensified over a trade war, investors have fled global stocks and returned to the U.S., where funds have seen $6.3 billion in inflows. The iShares emerging market ETF has seen $5.4 billion in outflows in June, the most of any fund, according to ETF.com.

“U.S. dollar strength and persistent underperformance seem to be driving fund investors away from non-U.S. equities,” TrimTabs said in a note.

Interestingly, one of the regions suffering the lowest level of investor fear is China, where funds have seen a net inflow of $150 million even though the nation’s main stock index has plunged into a bear market, defined as 20 percent below its most recent high.

For investors, then, the main question may be whether the outflows elsewhere are signaling something more ominous or are merely setting up another buying opportunity as valuations get cheaper.

“Cumulative flows for the year [across asset classes] are still up [thanks] to strong inflows in January. Russia and [South] Africa are now driving the outflows, as the most crowded markets at the eve of recent weakness,” Gabriele Foa, cross asset strategist for emerging markets at Bank of America Merrill Lynch, said in a note. “Selected opportunities are emerging thanks to weak levels.”

In fact, if the trend holds up through the end of June, it will make the first time global equities have seen net outflows since November 2016, according to TrimTabs.

Investors, however, remain bullish on Latin America, which has seen $30 million in inflows to ETFs in June even though the funds have lost 10 percent in June and more than 25 percent since May.


Company: cnbc, Activity: cnbc, Date: 2018-06-28  Authors: jeff cox, photographer, collection, getty images
Keywords: news, cnbc, companies, loss, outflows, biggest, recent, cash, stocks, seen, trade, thanks, financial, investor, global, crisis, market, investors, inflows, emerging, funds


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February’s sell-off saw investors yank the most money from US stocks in a decade

Investors pulled the most money out of U.S. stocks in February since the early days of the financial crisis. Outflows from U.S. equity mutual funds and exchange-traded funds totaled $41.3 billion in February, according to the Investment Company Institute. While investors pulled a total $53 billion from U.S. stocks from January to March, they turned to U.S. bonds and international stocks, the institute’s data showed. Much of the selling is in the passive investment products favored by retail inve


Investors pulled the most money out of U.S. stocks in February since the early days of the financial crisis. Outflows from U.S. equity mutual funds and exchange-traded funds totaled $41.3 billion in February, according to the Investment Company Institute. While investors pulled a total $53 billion from U.S. stocks from January to March, they turned to U.S. bonds and international stocks, the institute’s data showed. Much of the selling is in the passive investment products favored by retail inve
February’s sell-off saw investors yank the most money from US stocks in a decade Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-04-27  Authors: evelyn cheng, brendan mcdermid
Keywords: news, cnbc, companies, money, pulled, saw, funds, sp, yank, investors, billion, investment, products, decade, latest, selloff, stocks, outflows, februarys


February's sell-off saw investors yank the most money from US stocks in a decade

Investors pulled the most money out of U.S. stocks in February since the early days of the financial crisis.

Outflows from U.S. equity mutual funds and exchange-traded funds totaled $41.3 billion in February, according to the Investment Company Institute. That’s the most by a dollar amount since a $42.8 billion outflow in January 2008.

The S&P 500 fell 10 percent into correction territory in February for the first time in just about two years. The index lost nearly 4.5 percent that month and fell another 4.8 percent in March amid worries about rising interest rates, a potential U.S.-China trade war and prohibitive regulation on technology giants.

While investors pulled a total $53 billion from U.S. stocks from January to March, they turned to U.S. bonds and international stocks, the institute’s data showed. Domestic bonds saw inflows of $48 billion in the first quarter, and international stock funds gained $73 billion in inflows.

Much of the selling is in the passive investment products favored by retail investors. After a surge of inflows in January, U.S.-listed exchange-traded products posted their first two-straight months of outflows since 2008, according to Credit Suisse.

“Right across the board, everybody came into the year in a pretty buoyant mood,” said Michael Hartnett, chief investment strategist at Bank of America Merrill Lynch. He said the latest outflows reflect a shift from “sort of goldilocks enthusiasm” to a “resignation” that stocks will rise only modestly this year.

Investors’ “long positions of equities is being clipped and temporarily people are going into cash, but it’s not 2008 or 2009 where people are viewing the equity market as dangerous,” Hartnett said. “It was frothy at the beginning of the year and now it’s less frothy.”

The S&P 500 is about 7 percent below its record high and tracking for gains of more than 1 percent for April. But stocks have struggled to remain green for the year amid the latest concern, a peak in earnings growth. The benchmark index was unchanged for 2018 in Friday afternoon trading.


Company: cnbc, Activity: cnbc, Date: 2018-04-27  Authors: evelyn cheng, brendan mcdermid
Keywords: news, cnbc, companies, money, pulled, saw, funds, sp, yank, investors, billion, investment, products, decade, latest, selloff, stocks, outflows, februarys


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US stock funds suffer record outflows of $23.9 billion

U.S. stock funds saw a record $23.9 billion withdrawn by investors in the last week, according to new data, as the turmoil in global stock markets saw traders shun equities in favor of perceived safe havens. Exchange-traded fund (ETF) outflows alone constituted the bulk of withdrawals, at $21 billion, while mutual fund outflows made up $3 billion of withdrawals, according to data from Thomson Reuters’ Lipper unit. It also showed that tech stock funds suffered $1.1 billion in outflows in its wors


U.S. stock funds saw a record $23.9 billion withdrawn by investors in the last week, according to new data, as the turmoil in global stock markets saw traders shun equities in favor of perceived safe havens. Exchange-traded fund (ETF) outflows alone constituted the bulk of withdrawals, at $21 billion, while mutual fund outflows made up $3 billion of withdrawals, according to data from Thomson Reuters’ Lipper unit. It also showed that tech stock funds suffered $1.1 billion in outflows in its wors
US stock funds suffer record outflows of $23.9 billion Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-02-09  Authors: natasha turak, lucas jackson, brendan mcdermid
Keywords: news, games, cnbc, companies, suffer, funds, money, markets, billion, week, stock, record, outflows, 239, losses, fund


US stock funds suffer record outflows of $23.9 billion

U.S. stock funds saw a record $23.9 billion withdrawn by investors in the last week, according to new data, as the turmoil in global stock markets saw traders shun equities in favor of perceived safe havens.

Exchange-traded fund (ETF) outflows alone constituted the bulk of withdrawals, at $21 billion, while mutual fund outflows made up $3 billion of withdrawals, according to data from Thomson Reuters’ Lipper unit. It also showed that tech stock funds suffered $1.1 billion in outflows in its worst losses since 2016.

Lipper has tracked fund flows since 1992 and says it was the worst outflows on record. “We’re seeing a flight to safety here, money leaving equities, a lot of money going to money markets,” Pat Keon, senior research analyst for Lipper, told Reuters. Money market funds are hugely popular in the U.S. where they are seen as a safe place to park cash during bouts of volatility. The funds are seen as low-risk vehicles that invest in short-term securities.

Lipper’s figures tracked flows up until the week ended February 7, so it’s likely that there were larger moves on Thursday as the Dow Jones industrial average plummeted more than 1,000 points and entered a full correction mode.

The money wiped out of mutual funds and ETFs in the last week reveals the staggering losses for U.S.-based equities, but they are losses that the bulk of financial experts say were inevitable given the market’s historically high valuations through 2017 and into early 2018. All U.S. indexes enjoyed record highs, but many investors long warned that the markets were overbought and that a correction of at least 10 percent was due.


Company: cnbc, Activity: cnbc, Date: 2018-02-09  Authors: natasha turak, lucas jackson, brendan mcdermid
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Investors yank billions out of market following Trump’s tax bill win

As Congress moved the tax bill forward, investors pulled the highest amount out of equities funds in more than three years, suggesting some investors may see “tax cuts” as already priced in. For the week ending Wednesday, redemptions from bond funds overall totaled $3.2 billion, the largest in a year. Woodard said investors sold value, small caps, and financials, all “Trump trade” sectors that should benefit from the sweeping tax bill. U.S. value funds had outflows of $7.8 billion and small caps


As Congress moved the tax bill forward, investors pulled the highest amount out of equities funds in more than three years, suggesting some investors may see “tax cuts” as already priced in. For the week ending Wednesday, redemptions from bond funds overall totaled $3.2 billion, the largest in a year. Woodard said investors sold value, small caps, and financials, all “Trump trade” sectors that should benefit from the sweeping tax bill. U.S. value funds had outflows of $7.8 billion and small caps
Investors yank billions out of market following Trump’s tax bill win Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2017-12-22  Authors: patti domm, drew angerer, getty images
Keywords: news, games, cnbc, companies, yank, billion, saw, win, woodard, bill, week, tax, following, funds, largest, investors, outflows, trumps, market, billions


Investors yank billions out of market following Trump's tax bill win

As Congress moved the tax bill forward, investors pulled the highest amount out of equities funds in more than three years, suggesting some investors may see “tax cuts” as already priced in.

According to Bank of America Merrill Lynch, redemptions from equities funds and ETFs totaled $14.5 billion, the fourth largest on record, and the biggest since August, 2014, just weeks after Brexit.

For the week ending Wednesday, redemptions from bond funds overall totaled $3.2 billion, the largest in a year. High-yield bond funds were down $5.3 billion, the eighth consecutive week of outflows and the longest streak since the financial crisis in 2008.

“I think the reaction was notable this week, after the tax reform passage. The outflows were remarkable,” said Jared Woodard, global market strategist at BofA. Woodard said investors sold value, small caps, and financials, all “Trump trade” sectors that should benefit from the sweeping tax bill.

U.S. value funds had outflows of $7.8 billion and small caps lost $5.8 billion, both the largest on record.

“It was exactly the kind of places where you saw big inflows after the U.S. election,” he said. Woodard doesn’t believe the “buy the rumor, sell the news” behavior is negative for stocks near term, and the market should benefit from “risk on” in January. What it may be a sign of is that investors do not see the big returns some expect from the tax stimulus, Woodard said.

But nonetheless, Woodard said momentum is positive for the stock market for now. One area that saw inflows was tech, which is a sector not expected to see much benefit from the sharp decline in the corporate tax rate to 21 percent from 35 percent.

BofA’s bull bear indicator has moved further away from the sell signal level of 8, and was at 6.1 on weaker high yield flows and less bullish hedge fund positioning.

Investment grade corporates bonds saw inflows of $1.2 billion, the 52 positive week.

Congress voted on the tax bill Wednesday, and it was signed by President Donald Trump Friday.

Source: Bank of America Merrill Lynch


Company: cnbc, Activity: cnbc, Date: 2017-12-22  Authors: patti domm, drew angerer, getty images
Keywords: news, games, cnbc, companies, yank, billion, saw, win, woodard, bill, week, tax, following, funds, largest, investors, outflows, trumps, market, billions


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