LSEG Lipper is rechecking its U.S. investment grade fund flow numbers after JPMorgan raised concerns that the latest figures may be wrong. The data in question showed the largest outflows from investment grade funds in more than six years — a move that would have signaled a sharp shift in investor sentiment.
The flagged data
JPMorgan analysts spotted the anomaly and alerted LSEG Lipper, which tracks mutual fund and ETF flows. The original report indicated that investors pulled a massive amount from investment grade bond funds during a recent week. If accurate, it would have marked the steepest withdrawals since at least 2018.
But JPMorgan’s team found inconsistencies in the numbers and suggested the outflow figure might be inflated. Neither firm has disclosed the exact dollar amount or the specific dates under review.
Review underway
LSEG Lipper confirmed it is now examining the methodology and raw data behind the suspect report. The firm has not said how long the review will take or when corrected figures might be released.
Investment grade bond funds have been under pressure this year as interest rates stayed elevated, but sudden outflows of that magnitude would have surprised many market participants. If the error is confirmed, it could mean investor behavior is less dramatic than initially thought.
JPMorgan declined to comment further on its internal analysis. LSEG Lipper did not respond to requests for additional details.
The next scheduled release of weekly fund flow data from LSEG Lipper is due next Tuesday. It’s unclear whether that report will include a correction or a note about the ongoing review.
