12 Aug 2011, by
Tom Roseen reviews Lipper's U.S. weekly fund flows for the week ended August 10, 2011. Despite earning next to nothing in yields, shell-shocked investors injected a net $47.5 billion into money market funds for the week ended August 10, 2011, the largest weekly net inflow since January 2009. In an effort to stem the bleeding from the recent market freefall, investors took risk off their portfolios, redeeming $14.4 billion from equity funds (including exchange traded products) and $6.9 billion from fixed income funds (their second consecutive week of outflows and largest since the week ended August 10, 2008).
Shrugging off the recent downgrade of U.S. sovereign debt, investors injected some $749 million into U.S. Treasury funds, their largest net inflows since June 30, 2010, while high current yield funds and bank loan funds experienced significant redemptions. A few brave investors putting money back to work injected net flows into equity income funds (+$0.3 billion), commodity precious metals funds (+$1.6 billion), and international and global debt funds (+$0.2 billion).