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UPDATE 1-U.S.-based investment-grade corporate bond funds see 14th week of inflows

Jennifer Ablan

inflows@ (Adds quotes from head of research services at Lipper, table) May 2 (Reuters) - Investors gravitated toward the higher-quality spectrum of the credit markets this week, as U.S.-based investment-grade corporate bond funds attracted about $374.5 million in net cash, their 14th consecutive week of inflows. According to Refinitiv's Lipper research data on Thursday, investors sent roughly $16 billion in net cash to U.S. money-market funds for the week ended Wednesday, following their previous week's inflows of $4.26 billion. U.S.-based equity mutual funds, however, had another rough week. Investors pulled $5.5 billion from U.S.-based equity mutual funds in the week ended Wednesday, Lipper data show, while equity exchange-traded funds garnered $3.7 billion. "Despite the S&P 500 setting three record closes during the fund-flows week, investors remained on the equity sidelines after learning about disappointing Q1 revenue growth from stalwart Alphabet," said Tom Roseen, head of research services at Lipper. "There was a split once again between mom-and-pop investors and authorized participants. Equity mutual funds witnessed outflows of $5.5 billion, while equity ETFs took in $3.7 billion during the fund flows week." U.S.-based taxable exchange-traded funds posted cash withdrawals for the week, with investors withdrawing $700 million in net cash. "While investors were keeping a keen eye on the FOMC (Federal Open Market Committee) meeting, which concluded on Wednesday on a more hawkish note than some anticipated, taxable-fixed income mutual funds took in small amounts of net new money - $348 million-plus, with ETF investors ... withdrawing $700 million," Roseen said. "Interestingly, though, both investors types were net purchasers of municipal bond funds, injecting $877 million into conventional open-end funds and $314 million for ETFs, respectively," Roseen said. "For the week, the average municipal bond fund returned 0.51 percent." The following is a broad breakdown of the flows for the week, including mutual funds and exchange-traded funds:

Sector Flow Chg % Assets Assets ($Bil) Count


All Equity Funds -1.788 -0.02 7,305.647 11,791Domestic Equities -1.235 -0.02 5,200.231 8,390Non-Domestic -0.553 -0.03 2,105.415 3,401


All Taxable Bond -0.352 -0.01 2,870.719 5,829


All Money Market 15.984 0.55 2,938.942 1,004


All Municipal Bond 1.191 0.26 457.828 1,344


(Reporting by Jennifer Ablan Editing by James Dalgleish)