U.S. bond funds see least demand since July-ICI

Wed Nov 7, 2012 5:19pm EST

By Sam Forgione
    NEW YORK, Nov 7 (Reuters) - Investors in U.S.-based mutual
funds put the lowest amount of new cash into bond funds since
July in the latest week, while becoming less averse to stock
funds, data from the Investment Company Institute showed on
    Bond funds attracted estimated net inflows of $2.62 billion
in the week ended October 31, the least new demand for the funds
since early July, ICI, a U.S. mutual fund trade organization,
    Stock funds, meanwhile, had net outflows of $2.43 billion as
investors continued to take less money out of the funds for the
fourth straight week. In the previous week, investors took $2.47
billion out of stock funds.
    The benchmark S&P 500 index rose just 0.24 percent
over the reporting period after mixed corporate earnings -
including weak reports from Apple Inc and Amazon
 - and data showing investment by U.S. businesses
stalled in September.
    Funds that hold municipal bonds, which have the advantage of
not being taxed, had inflows of $385 million, the least since
early April. 
    Investors also cooled toward hybrid funds, which can invest
in stocks and fixed income securities, and took $672 million out
of the funds. That was the first outflow from the funds since
early June.
    The following table shows a breakdown of ICI flows for the
past five weeks (all figures in millions of dollars):
               10/3/12  10/10/12  10/17/12  10/24/12  10/31/2012
 Total Equity  -11,227    -2,606    -2,493    -2,472      -2,433
    Domestic   -10,601    -2,311    -2,123    -1,852      -1,885
    World         -626      -296      -369      -620        -548
 Hybrid*         2,291       274       837     1,323        -672
 Total Bond      9,517     9,506     8,844     6,611       2,616
    Taxable      8,192     8,161     7,575     5,660       2,231
    Municipal    1,326     1,346     1,269       952         385
 Total             581     7,173     7,188     5,462        -488
  *Hybrid funds can invest in stocks and/or fixed income
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