UPDATE 1-US-based stock mutual fund inflows most in 3 weeks -ICI

Wed Mar 20, 2013 6:49pm EDT

By Sam Forgione
    NEW YORK, March 20 (Reuters) - Investors in U.S.-based
mutual funds put $3.86 billion into stock funds as the Dow Jones
industrial average continued its record-breaking rally, data
from the Investment Company Institute showed on Wednesday.
    The estimated inflows into stock mutual funds over the week
ended March 13 were the most in three weeks, said ICI, a U.S.
mutual fund trade organization.
    Funds that hold U.S. stocks had inflows of $849 million over
the week, reversing two weeks of outflows. Funds that hold
non-U.S. stocks, meanwhile, had inflows of $3.01 billion, down
modestly from the prior week's inflows of $3.51 billion. 
    Bond mutual funds attracted inflows of $1.64 billion, the
least since the week ended Jan. 2 and down from cash gains of
$6.42 billion the prior week.
    The Dow's nine-day winning streak through March 13 marked
the longest consecutive run since November 1996. The benchmark
S&P 500 was about 1 percent away from an all-time intraday high
on March 13.
    The Dow was up 1.1 percent over the reporting period, while
the S&P 500 was up 0.85 percent.
    Signs of strength in the U.S. economy, including a drop in
the jobless rate to a four-year low of 7.7 percent, and the
Federal Reserve's easy monetary policy have advanced the rally
in stocks.
    Municipal bond funds suffered outflows of $335 million in
the latest week, their first redemptions since late December of
2012.
    Hybrid funds, which can invest in stocks and fixed income
securities, attracted inflows of $2.07 billion, the least in
three weeks.
    The following table is a breakdown of estimated ICI flows
for the past five weeks (all figures in the millions dollars):
               2/13/13  2/20/13  2/27/2013   3/6/2013  3/13/2013
 Total Equity    5,681    4,562      1,049      2,936      3,861
    Domestic       520    1,092     -1,131       -571        849
    World        5,160    3,470      2,179      3,507      3,012
 Hybrid*         2,029    2,018      2,386      2,496      2,073
 Total Bond      5,009    4,708      4,974      6,417      1,638
    Taxable      4,169    4,118      4,395      6,056      1,973
    Municipal      840      590        579        361       -335
 Total          12,719   11,288      8,408     11,848      7,572
 *Hybrid funds can invest in stocks and/or fixed income
securities.