U.S.-based stock funds attract $7.9 bln in latest week - ICI

Wed Nov 6, 2013 1:37pm EST

NEW YORK, Nov 6 (Reuters) - Investors in mutual funds based
in the United States committed $7.91 billion to stock funds in
the latest week on expectations the Federal Reserve would stick
with its current bond-buying program, data from the Investment
Company Institute showed on Wednesday. 
    The inflows into stock funds in the week ended Oct. 30
marked the third straight week of new cash into the funds,
according to data from ICI, a U.S. mutual fund trade
organization. 
    Still, the inflows were down from the prior week's $13.6
billion, which were the largest since early January.
    In the latest week, funds that hold U.S. stocks attracted
$4.3 billion, down from $9.2 billion the previous week, which
were the largest since ICI began tracking weekly mutual fund
flows in January 2007. The Standard & Poor's 500 index
rallied 1 percent over the weekly period.
    Funds that hold non-U.S. stocks attracted $3.6 billion, down
from the prior week's inflows of about $4.4 billion,  which were
the biggest weekly inflows into the funds since mid-February.
MSCI's world equity index rose 0.7 percent over
the weekly period.
    The S&P 500 hit record highs over the latest
reporting period on bets that the Fed would maintain its $85
billion in monthly bond-buying at its October meeting. In line
with expectations, the central bank extended its bond-buying
support on Oct. 30. 
    Outflows from bond funds accelerated in the latest week to
$4.1 billion, from $2.3 billion in the prior week, marking a
fifth straight week of withdrawals from the funds. 
    Funds that hold municipal bonds had outflows of $789
million, the lowest in five weeks but still marking the 23rd
straight week of withdrawals from the funds. 
    Hybrid funds, which can invest in stocks and fixed income
securities, attracted about $2.1 billion in new cash over the
latest reporting period, down modestly from the prior week's
inflows of $2.4 billion but still marking the fourth straight
week of inflows into the funds. 
    The following table shows estimated ICI flows for the past
five weeks (all figures in millions of dollars):
                 10/2/13     10/9   10/16    10/23    10/30
 Total Equity     -3,354   -3,068   2,940   13,562    7,908
    Domestic      -4,094   -5,181     836    9,192    4,284
    World            740    2,113   2,104    4,370    3,623
 Hybrid*             -52      194     618    2,371    2,077
 Total Bond         -396   -2,535  -5,446   -2,322   -4,143
    Taxable          472   -1,506  -3,597   -1,300   -3,355
    Municipal       -869   -1,029  -1,849   -1,023     -789
 Total            -3,802   -5,409  -1,887   13,610    5,841
 *Hybrid funds can invest in stocks and/or fixed income
securities.
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