U.S. Money Market Funds See Substantial Inflows

(Reuters) – U.S. money market funds attracted substantial inflows in the week to Oct. 23 as uncertainty over the U.S. presidential election and a reassessment of the Federal Reserve rate outlook boosted demand for safer assets.

According to LSEG data, investors acquired a net $29.98 billion worth of money market funds during the week, marking their fourth weekly net purchase in five weeks.

Riskier equity funds, however, experienced a net outflow of $2.54 billion, ending a three-week buying trend. Investors sold U.S. large-cap, multi-cap, mid-cap, and small-cap funds worth $2.68 billion, $1.5 billion, $1.03 billion, and $201 million, respectively. This contrasts with net purchases from the previous week, which totaled $15.2 billion, $672 million, $1.49 billion, and $473 million.

Conversely, U.S. sectoral equity funds saw inflows for the second consecutive week, attracting a net $1.03 billion. Investors purchased funds in the consumer discretionary, gold and precious metals, and communication services sectors, valued at $802 million, $677 million, and $599 million, respectively.

Additionally, U.S. money market funds secured inflows for the 21st straight week, totaling a net $3.39 billion. U.S. short-to-intermediate investment-grade funds attracted $1.83 billion, marking the sixth successive weekly inflow. General domestic taxable fixed income funds drew inflows of $1.44 billion, while investors also channeled about $500 million each into municipal debt, loan participation, and mortgage funds.