U.S. mutual funds had the largest outflows in nearly three years in the wake of the downgrade of the U.S. credit rating by Standard & Poor's, data from the Investment Company Institute showed Wednesday.
Investors pulled a net $40.3 billion out of those funds in the week ended Aug. 10, the largest weekly withdrawal since early October 2008, soon after the collapse of Lehman Brothers. Equity funds lost a total of $30 billion in the same period, their worst performance since late January 2008, said ICI, a U.S. mutual fund trade organization.
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Domestic equities had the second highest net outflows since ICI started compiling weekly data in 2007. The estimated data captures withdrawals after the U.S. credit rating downgrade by Standard & Poor's on Aug. 5.