Investors shun U.S. stock funds as budget talks falter -ICI

By Sam Forgione
NEW YORK, Dec 12 (Reuters) - Investors in U.S.-based mutual
funds shunned stocks for the 20th consecutive week as talks on a
U.S. budget deal faltered, data from the Investment Company
Institute showed on Wednesday.
Stock funds had estimated net outflows of $7.16 billion in
the week ended Dec. 5, said ICI, a U.S. mutual fund trade
organization. In the prior week, investors pulled just $627
million out of the funds, which was the least taken out of the
funds in 19 weeks.
Bond funds, meanwhile, had net inflows of $5.23 billion,
which is the most new cash they have received in three weeks.
The benchmark S&P 500 stock index fell 0.33 percent
over the reporting period as President Barack Obama and Congress
remained at loggerheads over how to resolve the looming "fiscal
cliff" of tax increases and spending cuts.
Hybrid funds, which can invest in stocks and fixed income
securities, had outflows of $70 million after raking in $144
million the previous week. The funds have suffered outflows for
just seven weeks this year.
The following is a breakdown of ICI flows for the past five
weeks (all figures in the millions of dollars):

11/7/12 11/14/12 11/20/12 11/28/12 12/5/2012
Total Equity -1,837 -8,386 -8,811 -627 -7,163
Domestic -2,137 -6,632 -7,498 -613 -5,844
World 301 -1,754 -1,313 -15 -1,320
Hybrid* 553 -1,218 -1,197 144 -70
Total Bond 7,470 6,615 4,398 4,254 5,226
Taxable 6,387 5,352 3,032 2,956 4,153
Municipal 1,084 1,263 1,366 1,299 1,074
Total 6,187 -2,989 -5,610 3,771 -2,007
* Hybrid funds can invest in stocks and/or fixed-income
securities.