- Morgan Stanley, Fidelity and BlackRock funds exposed to collapse of Silicon Valley Bank and Signature Bank.
- Mutual fund investors benefit from portfolio diversification, but further selloffs could increase pressure.
- Shares of regional banks plunged on contagion fears.
- KBW Regional Banking Index down 15.1% for the year, trailing the S&P 500.
- Investors put $500m into financial stocks last week, the third-largest inflow among all US sectors.
Morgan Stanley, BlackRock funds among those exposed to regional bank failures
Mutual funds managed by Morgan Stanley , Fidelity, and BlackRock appear to be among the most exposed to the collapse of Silicon Valley Bank and Signature Bank, Morningstar data showed, as a market selloff has erased more than $100 billion of U.S. banks' value.
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