Investors pull $1.1 billion from stock funds, add $6.8 billion in money funds: Lipper

NEW YORK (Reuters) – Risk aversion was on display this week given geopolitical concerns and uncertainty over North Korea as investors in U.S.-based funds pulled $1.1 billion out of stock funds in the week ended Sept. 6, and moved money into &ldquo-safe haven&rdquo- money-market and gold funds, data from Thomson Reuters&rsquo- Lipper service showed on Thursday.

U.S.-based money-market funds attracted $6.8 billion of inflows over the weekly period, while taxable bond funds attracted $1.6 billion in inflows to mark their ninth straight week of inflows, with funds that specialize in safe-haven U.S. Treasuries drawing $458 million of that sum to mark their fourth straight week of inflows.

U.S.-based commodities precious metals funds, which include gold futures, attracted $878 million of inflows over the weekly period, their biggest inflows since early February, according to Lipper data.

&ldquo-Risk off is driven by geopolitical concerns and uncertainty over North Korea,&rdquo- said Pat Keon, senior research analyst at Thomson Reuters Lipper.

&ldquo-Markets tanked the first day back from Labor Day weekend after North Korea announced they tested a hydrogen bomb, and in response, the U.S. engaged in saber rattling with Secretary Defense (James) Mattis threatening a massive military response and United Nations Ambassador Nikki Haley telling the U.N. that North Korea was begging for war.&rdquo-

U.S.-based corporate investment-grade bond funds posted their first cash outflows of the year, albeit a small amount, according to Lipper. The group saw investors pull $43 million.

Emerging markets equity funds posted $107 million in outflows over the weekly period, their first cash withdrawals in three weeks, Lipper said. Emerging markets debt funds attracted $184 million, their third straight week of inflows, Lipper added.