U.S.-based municipal bond funds gained $602 mln in latest week -ICI

Wed May 22, 2013 4:14pm EDT

By Sam Forgione
    NEW YORK, May 22 (Reuters) - Investors in mutual funds based
in the United States committed $602 million to municipal bond
funds in the latest week, the most since mid-February, according
to data released by the Investment Company Institute on
Wednesday.
    The inflows to municipal bond funds in the week ended May 15
reversed outflows of $263 million in the prior week, said ICI, a
U.S. mutual fund trade organization. The latest inflows were the
most since the second week of February. 
    Funds that hold taxable bonds pulled in $3.9 billion over
the reporting period, down from $7.65 billion the prior week.
The latest inflows, combined with the cash gains for municipal
bond funds, led to total inflows of $4.5 billion for bond funds
over the week. 
    Stock funds attracted $2.38 billion in new cash over the
weekly reporting period, down from inflows of $3.42 billion the
previous week. Funds that hold non-U.S. stocks pulled in about
$2.26 billion, while funds that hold U.S. stocks gained just
$121 million in inflows.
    The benchmark S&P 500 rose 1.6 percent over the
reporting period. The S&P 500 and Dow Jones industrial average
 closed at record highs on May 10, 14th, and 15th. Gains
in the stock prices of large-capitalization companies such as
Google, Bank of America, and Citigroup 
helped fuel rises over the period.
    Hybrid funds, which can invest in stocks and fixed income
securities, pulled in $1.6 billion in new cash, up slightly from
inflows of about $1.55 billion the previous week. 
    The following table is a breakdown of estimated ICI flows
for the past five weeks (all figures in millions of dollars):
               4/17/13  4/24/13   5/1/13   5/8/2013  5/15/2013
 Total Equity    2,620    1,333   -4,408      3,421      2,380
    Domestic     1,974     -575   -4,100        363        121
    World          646    1,908     -308      3,059      2,258
 Hybrid*         1,305    1,358    6,480      1,545      1,602
 Total Bond      1,509    5,681      926      7,391      4,523
    Taxable      2,205    5,568      853      7,654      3,921
    Municipal     -696      114       72       -263        602
 Total           5,434    8,372    2,998     12,358      8,505
 *Hybrid funds can invest in stocks and/or fixed income
securities.
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