U.S. stock funds suffer $9.5 bln outflow amid fiscal deal -ICI

NEW YORK, Jan 9 (Reuters) - Investors in U.S.-based mutual
funds pulled the most cash out of stock funds in three months in
the latest week as U.S. lawmakers reached a deal to avert a
"fiscal cliff" of tax hikes and spending cuts, data from the
Investment Company Institute showed on Wednesday.
Investors pulled an estimated $9.5 billion out of stock
funds in the week ended Jan. 2, the most since early October,
said ICI, a U.S. mutual fund trade organization. The amount was
more than double the previous week's outflows of $3.8 billion.
Demand for bond funds grew, with investors pumping $3.21
billion into the funds, up modestly from the previous week's
inflows of $2.56 billion.
The outflows from stock funds came despite the benchmark S&P
500's 3 percent gain over the reporting period. Markets
rallied after President Barack Obama and Congress reached a
budget deal, although the agreement delayed spending cuts by two
months. Congress must also raise the $16.4 trillion U.S. debt
ceiling next month or risk default.
Hybrid funds, which can invest in stocks and fixed-income
securities, suffered minor outflows of $152 million over the
weekly period after attracting $774 million in new cash the
prior week.
The following table is a breakdown of ICI flows for the past
five weeks (all figures in millions of dollars):
12/5/12 12/12/12 12/19/12 12/26/12 1/2/2013
Total Equity -7,180 -8,479 -5,004 -3,789 -9,501
Domestic -5,858 -7,233 -5,292 -3,870 -8,288
World -1,321 -1,246 289 81 -1,213
Hybrid* -71 119 -20 774 -152
Total Bond 5,157 1,787 427 2,559 3,214
Taxable 4,084 1,576 3,690 3,260 2,924
Municipal 1,074 211 -3,263 -701 291
Total -2,093 -6,572 -4,598 -455 -6,439
*Hybrid funds can invest in stocks and/or fixed income
securities.