Loan funds snap 9-week losing streak with $123M inflow

U.S. loan funds reported a net inflow of $122.8 million for the week ended Aug. 17, according to data from Lipper. This marks the first inflow to the asset class in ten weeks, ending a negative streak that saw $8.8 billion pulled from funds over that run.

The swing into positive territory follows four straight weeks in which outflows had diminished, ending with a $307.2 million outflow last week. While the market saw two weeks of inflows in June they were modest, and as such this is the largest inflow since May 4 ($557.9 million).

The four-week trailing average remains in the red, at negative $340.3 million, but that is lowest it has been in seven weeks, reflecting the gradual narrowing of outflows over the course of the summer.

Drilling down, this week's inflow was the result of $348.1 million pouring into ETFs, outpacing the $225.3 million pulled from mutual funds during the week. For ETFs, that is the third straight week of inflows and the largest since June 1. Mutual funds extended their losing streak to 15 weeks, although it should be noted this is smallest outflow since June 8.

In a continued reflection of the positive market tone in recent weeks, the change due to market conditions showed an increase of $225.2 million. 

In the year-to-date, the net inflow is $8.33 billion. Total assets at U.S. loan funds stand at roughly $93 billion, of which $19 billion are in ETFs, or about 20% of the total.