U.S. mutual fund investors flee bonds, return to stocks -ICI

Wed Oct 23, 2013 11:52am EDT

By Katya Wachtel
    NEW YORK, Oct 23 (Reuters) - Investors in U.S-based mutual
funds sent $2.9 billion into stock funds in the latest week as
the federal government ended a shut-down and averted a debt
default, data from the Investment Company Institute showed on
Wednesday.
    Inflows into stock funds in the week ended Oct. 16 marked a
dramatic reversal from the previous three weeks, when investors
removed billions of dollars from those funds as concern rose
that Congress would not raise the $16.7 trillion U.S. debt
ceiling by the Oct. 17 deadline. 
    Investors meanwhile yanked $5.7 billion from bond funds over
the weekly period, marking the biggest outflow from the funds in
four weeks and more than doubling the prior week's outflows of
$2.55 billion, data from the U.S. mutual fund trade organization
showed.
    Funds that hold U.S. stocks had inflows of $839 million.
Similarly, funds that hold stocks of companies outside the
United States saw inflows of roughly $2 billion.
    Hybrid funds, which can invest in stocks and fixed income
securities, experienced inflows of $618 million in new cash.
     The following table shows estimated ICI flows for the past
five weeks (all figures in millions of dollars):
   
                9/18/13   9/25/13   10/2/13   10/9/13  10/16/13
 Total Equity     3,381    -3,673    -3,353    -3,115     2,935
    Domestic         43    -3,855    -4,096    -5,184       839
    World         3,338       182       744     2,069     2,095
 Hybrid*          1,523     1,318       -52       191       618
 Total Bond      -2,643     1,766      -396    -2,550    -5,709
    Taxable        -895     2,054       473    -1,521    -3,860
    Municipal    -1,748      -289      -869    -1,029    -1,849
 Total            2,262      -589    -3,800    -5,473    -2,156
 *Hybrid funds can invest in stocks and/or fixed income
securities.
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