Are Mutual Fund Managers Signaling A Selloff?

Domestic and global equity funds see outflows again last week.

The Investment Company Institute released weekly data on mutual funds and exchange traded funds (ETFs) on Wednesday. The data suggest that fund managers are very concerned about the U.S. economy, the ongoing trade war, and other factors. Last week, mutual funds and ETFs dropped roughly $11.8 million in U.S. equities.

The outflows came the same week that American manufacturing data hit a 10-year low. Investors do not appear overly optimistic that the White House and China will advance a major trade deal this week. Most analysts project a deal that won’t happen until well into 2020. JPMorgan CEO Jamie Dimon has even suggested that a deal won’t come until after the 2020 election.

Meanwhile, the Federal Reserve noted during its most recent meeting that the probability of a recession has “increased notably.” Minutes from the September 17-18 FOMC meeting suggest that ongoing trade tensions and geopolitical tensions are affecting economic sentiment.

Investment Company Institute: Global Funds See Outflows Too

The Investment Company Institute’s data shows that investors have pulled $103 billion from domestic equity funds this year. Bonds have become an investment preference due to the perceived safety of fixed income. The ICI says that investors have pushed roughly $327.5 billion into bonds.

Global stock funds have also seen an outflow of capital. For the week, those funds saw $2 billion depart. That marks the fourth-straight week that investors pulled more money into global stock funds than they put into those funds.

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Alt Insights

January 16, 2020

ESG: Lately-turned Tesla Bull Jim Cramer Adds Fink To The Mix

ESG: Lately-turned Tesla Bull Jim Cramer Adds Fink To The Mix
Shape

Latest Alternative Investment News

Private Equity: Lexington Partners Raises $14 Billion for Ninth Fund
January 22, 2020     Investments, News, Private Equity

Lexington Partners announced the closing of Lexington Capital Partners IX which raised $14 billion of commitments. Lexington Capital is one of the largest funds that invest in private equity and…

ESG: Citigroup Social Impact Fund Hits $150 Million
January 22, 2020     Alternative Investments, Investments, News

The details around the Citigroup social impact fund emerged this week. The bank announced it funded a $150 million social impact fund. The fund will invest in private companies that…

Next Generation Technology Growth Fund II Closes at $2.2 Billion
January 21, 2020     Investments, News, Private Equity

The KKR Next Generation Technology Growth Fund II has closed. KKR announced a $2.2 billion fund dedicated to growth equity investment opportunities in the technology space in North America, Europe,…

Blackstone CEO Steve Schwarzman: Fewer Things to Buy Today for Private Equity
January 21, 2020     Investments, Latest News, News, Private Equity

Blackstone CEO Steve Schwarzman confirmed our concerns about dry powder and higher valuations during an interview at the World Economic Forum. Schwarzman discussed the lack of opportunities with CNBC. The…