Investors flee U.S. stock funds before Brexit vote: Lipper

Fri Jun 24, 2016 12:54am EDT
 
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By Trevor Hunnicutt

NEW YORK (Reuters) - U.S. fund investors pulled out of riskier markets over the last week, data from Lipper showed on Thursday, as they braced for a British vote on its European Union membership even as stocks rallied.

Investors pulled $6.1 billion from U.S.-based stock funds during the weekly period ended June 22, the data showed. That was the most pulled from the funds since the week ended May 4.

"The theme is Brexit, and people are concerned," said Tom Roseen, head of research services for Thomson Reuters Lipper.

Voting closed in the so-called "Brexit" referendum on Thursday, and early surveys pointed to voters' choosing to remain in the bloc.

The weeks before the vote brought dire predictions of economic fallout if Britain decides to leave.

Yet those fears eased in the days before the vote as polls suggested a remain vote might triumph.

U.S. fund investors fled stocks as MSCI's 46-country All World index recorded five straight days of gains.

In the latest week, investors pulled $1.8 billion from U.S.-based stock mutual funds and withdrew $4.3 billion from stock ETFs, according to Lipper data.   Continued...

 
A British Union flag and an European Union flag are seen flying outside the European Commission headquarters in Brussels, Belgium, June 1, 2016. REUTERS/Francois Lenoir