Investors Withdraw $530M from US Leveraged Loan Funds

U.S. loan funds recorded an outflow of $530 million for the week ended Nov. 15, according to Lipper weekly reporters only.

Last week, U.S. loan funds recorded an exit of roughly $1.5 billion, although more than $1 billion of that total outflow was the result of a reclassification at a single institutional investor, whereby the investor’s open-end fund was liquidated and merged into its closed-end fund. The transaction was reported as a net outflow as money exited the open-end universe.

With the exception of last week’s reclassification, the $530 million outflow this week marks the largest exit from the asset class since the week ended Feb. 24, 2016, when the total outflow was $618 million.

ETFs made up $290 million of the total outflow this week, while $240 million exited mutual funds.

The four-week trailing average dipped to negative $555 million, from negative $445 million last week.

Year-to-date inflows from leveraged loan funds now total $11.7 billion, based on inflows of roughly $7.1 billion to mutual funds and inflows of $4.6 billion to ETFs, according to Lipper.

The change due to market conditions this past week was negative $306 million. Total assets were $96.1 billion at the end of the observation period. ETFs represent about 20% of the total, at $19.1 billion. — James Passeri

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