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Bond, Stock Funds Hemorrhage Money in June

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Money has been flowing out of both bond and stock funds in the month of June. “A tough week in the fund industry turned in to a tough month in the fund industry. We saw flows really across the board both in equity and bond funds,” said Bob Jenkins, global head of research at Thomson Reuters Lipper.

According to Jenkins, taxable bond funds lost more than equity funds, shedding $9 billion in the last week of June. The high-yield space lost $3 billion in course of the week, bringing the total of the month to record of $12 billion in withdrawals.

Perhaps as a sign that investors are preparing for a changing rate environment, Jenkins said loan participation was the only bright spot in the bond arena, with a little more than $1 billion of inflows, extending their positive streak to 54 weeks.

Equity funds have broken the streak of month-on-month inflows in June primarily on the back of $9 billion in outflows from ETF products, Jenkins said.

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