Demand lags for US stock, bond funds on 'fiscal cliff' worry-ICI
By Sam Forgione Nov 28 (Reuters) - Investors in U.S.-based mutual funds took the most money out of stock funds in seven weeks and decreased commitments to bond funds in the latest week as budget talks continued, data from the Investment Company Institute showed on Wednesday. Stock funds had estimated net outflows of $8.82 billion in the week ended Nov. 20, the most in seven weeks, said ICI, a U.S. mutual fund trade organization. Bond funds, meanwhile, saw less demand with net inflows of $4.5 billion after raking in $6.62 billion in investor cash the previous week. The benchmark S&P 500 stock index rose 2.38 percent over the reporting period despite data showing that the euro zone entered a recession in the third quarter and uncertainty over how U.S. lawmakers would address the looming "fiscal cliff" of tax hikes and spending cuts. Hybrid funds, which can invest in stocks and fixed income securities, suffered outflows of $1.19 billion after investors pulled $1.22 billion out of the funds the previous week. The following table shows a breakdown of ICI flows for the past five weeks (all figures in the millions of dollars) : 10/24/ 10/31/12 11/7/12 11/14/12 11/20/2012 2 Total Equity -2,470 -2,486 -1,837 -8,385 -8,819 Domestic -1,850 -1,937 -2,137 -6,631 -7,509 World -619 -549 301 -1,754 -1,310 Hybrid* 1,322 -673 553 -1,218 -1,194 Total Bond 6,599 2,588 7,470 6,615 4,498 Taxable 5,651 2,206 6,387 5,352 3,131 Municipal 948 381 1,084 1,263 1,366 Total 5,452 -571 6,187 -2,988 -5,515 *Hybrid funds can invest in stocks and/or fixed income securities.
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