U.S.-listed bond mutual funds and exchange-traded funds (ETFs) saw record monthly redemptions of $61.7 billion through June 24 amid signs the country's central bank may scale back its unprecedented stimulus.
The redemptions surpassed the previous monthly record of $41.8 billion, set in October 2008, according to an e-mailed statement by TrimTabs Investment Research in Sausalito, California. Investors withdrew $52.8 billion from bond mutual funds and $8.9 billion from ETFs during the period, said Richard Stern, a spokesman for TrimTabs.
Bond funds worldwide have experienced withdrawals this month after Federal Reserve Chairman Ben S. Bernanke told Congress on May 22 that the central bank's policy-setting board could start reducing its bonds purchases in "its next few meetings," if the U.S. employment outlook shows sustained improvement. Bernanke told reporters in Washington on June 19 that the Fed is prepared to begin phasing out bond buying later this year and halt purchases around mid-2014 as long as the economy meets its forecast.
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