Bond funds gain most money since April ahead of Fed: ICI
NEW YORK |
NEW YORK (Reuters) - Investors in U.S.-based mutual funds pumped the most new money into bond funds since early April ahead of the Federal Reserve's announcement of more stimulus for the flagging U.S. economy, data from the Investment Company Institute showed on Wednesday.
Bond funds attracted estimated net inflows of $8.11 billion in the week ended September 12, the most since raking in $9.66 billion in the week ended April 4, said ICI, a U.S. mutual fund trade organization.
The benchmark S&P 500 rose 2.36 percent over the reporting period after markets rose on the European Central Bank's announcement of a new bond-buying program and investors awaited the Fed's announcement of a stimulus program targeting mortgage securities.
The surge in stocks failed to attract new money into equity funds, which saw net outflows of $3.3 billion as they continued to lose investor money for the eighth straight week. The losses exceed the previous week's outflows of $3.09 billion.
Hybrid funds, which can invest in stocks and fixed income securities, saw estimated net inflows of $1.31 billion over the period, an increase from inflows of $910 million the previous week.
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