Investors have pulled more money from U.S. equity funds since the end of April than in the five months after the collapse of Lehman Brothers Holdings Inc., adding to the $2.1 trillion rout in American stocks. About $75 billion was withdrawn from funds that focus on shares during the past four months, according to data compiled by Bloomberg from the Investment Company Institute, a Washington-based trade group, and EPFR Global, a research firm in Cambridge, Massachusetts. Outflows totaled $72.8 billion from October 2008 through February 2009, following Lehman’s bankruptcy, the data show. $177.7 billion has been removed during the past 30 months from mutual and exchange-traded funds that invest in U.S. shares as the benchmark gauge for American equity rallied as much as 102 percent, before falling 17.9 percent through Aug. 8. Investors pumped in $18.7 billion during the first four months of 2011, before removing about four times that amount since, according to the average of data from EPFR and ICI, the money managers’ trade group. The August estimate doesn’t include ETF data from ICI. Bond funds added $42.3 billion from the end of April through July and started posting weekly outflows last month, according to ICI. Since the bull market began, fixed-income managers have received a net $666.4 billion.
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Tuesday, September 20, 2011
Investors have pulled more money from U.S. equity funds since the end of April than in the five months after the collapse of Lehman Brothers Holdings Inc., adding to the $2.1 trillion rout in American stocks. About $75 billion was withdrawn from funds that focus on shares during the past four months, according to data compiled by Bloomberg from the Investment Company Institute, a Washington-based trade group, and EPFR Global, a research firm in Cambridge, Massachusetts. Outflows totaled $72.8 billion from October 2008 through February 2009, following Lehman’s bankruptcy, the data show. $177.7 billion has been removed during the past 30 months from mutual and exchange-traded funds that invest in U.S. shares as the benchmark gauge for American equity rallied as much as 102 percent, before falling 17.9 percent through Aug. 8. Investors pumped in $18.7 billion during the first four months of 2011, before removing about four times that amount since, according to the average of data from EPFR and ICI, the money managers’ trade group. The August estimate doesn’t include ETF data from ICI. Bond funds added $42.3 billion from the end of April through July and started posting weekly outflows last month, according to ICI. Since the bull market began, fixed-income managers have received a net $666.4 billion.
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Reuters
guardian.co.uk, Tuesday 20 September 2011 07.47 BST Article history
Standard and Poor's dropped Italy's credit rating from A+ to A. Photograph: Brendan Mcdermid/Reuters
Italy has had its sovereign credit rating cut by Standard and Poor's , with the ratings agency keeping the country's outlook on negative in a major surprise that may add to contagion fears in the debt-stressed eurozone.
The agency cut Italy's government debt rating to A/A-1 from A+/A-1+ and said Italy's economic growth prospects were getting weaker, with planned reforms by the government not expected to help much.
"We believe the reduced pace of Italy's economic activity to date will make the government's revised fiscal targets difficult to achieve," S&P said in a statement.
Italy follows eurozone partners Spain, Ireland, Greece, Portugal and Cyprus in having its credit rating downgraded this year.
Kathy Lien, director of currency research at GFT, said the ratings downgrade would have a heavy impact on the eurozone. "This is definitely going to put a damper on any recovery in euro/dollar. Italy is a much bigger deal than Greece,'' she said. "It's a much bigger deal because a lot more countries are exposed to Italian debt than they are Greek debt. The greatest concern was never really about Greece but the contagion over to Italy and to Spain."
US stocks fell ahead of S&P's announcement but staged a late comeback as fears of a near-term Greek debt default faded on news of a possible deal to advance new bailout funds to Athens.
The Nikkei average is expected to slip on Tuesday, though it is likely to stick to a narrow range ahead of a US Federal Reserve meeting.
"Japanese markets were closed on Monday for a national holiday, meaning investors here have to catch up to all of the developments overseas," said Kenichi Hirano, operating officer at Tachibana Securities.
"Worries about E
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