UPDATE 1-US-based stock mutual funds post 3rd straight week of inflows-ICI

Wed Jan 30, 2013 5:44pm EST

By Sam Forgione
    NEW YORK, Jan 30 (Reuters) - U.S.-based stock mutual funds
attracted $6.35 billion in new money in the latest week, their
third consecutive week of inflows, data from the Investment
Company Institute showed on Wednesday.
    Among the inflows into stock mutual funds in the week ended
Jan. 23, an estimated $3.49 billion went into funds that hold
U.S. stocks, according to ICI, a U.S. mutual fund trade
    The remaining $2.86 billion flowed into mutual funds that
hold foreign stocks, it said.
    The cash gains confirm the positive turnout for stock mutual
funds since the start of the year, although they marked the
weakest gains of the three-week run.
    The funds attracted $14.33 billion in the first full week of
the year, the most on a record that extends back to the start of
2007, ICI said. In the following week, the funds gained $9.2
    Bond funds, meanwhile, attracted $8.03 billion in new cash
in the latest week, which was compared with cash gains of $10.6
billion the prior week.
    The benchmark S&P 500 index rose 1.5 percent over the
reporting period. Signals that Republican leaders would pass a
nearly four-month extension of the U.S. debt ceiling, upbeat
data on U.S. unemployment claims and strong earnings from
technology companies all boosted sentiment.
    Hybrid funds, which can invest in stocks and fixed-income
securities, attracted $1.94 billion in inflows. That sum is
modestly less than inflows of $2.12 billion the previous week.
    The following table is a breakdown of ICI flows for the past
five weeks (all figures in millions of dollars):
               12/26/12   1/2/13  1/9/2013  1/16/2013  1/23/2013
 Total Equity    -4,307  -10,744    14,333      9,201      6,349
    Domestic     -3,942   -9,261     7,731      4,894      3,485
    World          -366   -1,483     6,601      4,307      2,864
 Hybrid*            533     -154     2,808      2,122      1,936
 Total Bond       2,532    1,450     9,423     10,600      8,033
    Taxable       3,233    1,178     7,042      8,358      6,621
    Municipal      -701      272     2,381      2,242      1,413
 Total           -1,242   -9,448    26,564     21,923     16,319
 *Hybrid funds can invest in stocks and/or fixed-income