US bond fund inflows continue while stocks still bleed-ICI
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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