US bond fund inflows continue while stocks still bleed-ICI

Wed Oct 24, 2012 3:54pm EDT

By Sam Forgione
    NEW YORK, Oct 24 (Reuters) - Investors in U.S.-based mutual
funds favored bonds again in the latest week but continued to
show less aversion to stocks, data from the Investment Company
Institute showed on Wed nesday.
    Bond funds had estimated net inflows of $8.86 billion in the
week ended Oct. 17, said ICI, a U.S. mutual fund trade
organization. The inflows were modestly lower than the previous
week's inflows of $9.51 billion but still reflect
higher-than-average demand.
    Stock funds had net outflows of $1.73 billion, the least
taken out of the funds in 13 weeks and an improvement from the
previous week's outflows of $2.61 billion. At the start of the
month, investors took $11.22 billion out of stock funds, the
most since Aug. of 2011.
    The benchmark S&P 500 rose about 2 percent over the
reporting period after rating agency Moody's affirmed an
investment-grade sovereign rating on debt-ridden Spain and U.S.
corporate earnings became more positive. 
    Hybrid funds, which can invest in stocks and fixed income
securities, had inflows of $818 million after scant inflows of
$242 million the previous week. 
    The following table shows a breakdown of ICI flows for the
past five weeks (all figures in millions of dollars):
    
               9/19/12  9/26/12  10/3/12  10/10/2012  10/17/2012
 Total Equity   -5,120   -7,547  -11,220      -2,606      -1,730
    Domestic    -4,761   -5,131  -10,601      -2,311      -1,361
    World         -359   -2,416     -619        -295        -369
 Hybrid*         1,635     -386    2,260         242         818
 Total Bond      7,990    8,291    9,524       9,508       8,863
    Taxable      7,545    6,854    8,198       8,163       7,575
    Municipal      445    1,437    1,326       1,346       1,288
 Total           4,505      359      564      7,144        7,951
                                                      
 *Hybrid funds can invest in stocks and/or fixed income
securities.
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