U.S.-based stock funds attract $8.3 billion -ICI

Wed Jan 22, 2014 1:47pm EST

NEW YORK, Jan 22 (Reuters) - Investors in U.S.-based mutual
funds poured $8.3 billion into stock funds in the week ended
Jan. 15, marking the biggest inflows in ten weeks on some strong
U.S. economic reports, data from the Investment Company
Institute showed on Wednesday. 
    The inflows into stock funds reversed the prior week's
outflows of $417 million, the first withdrawals from the funds
in four weeks, the data from ICI, a U.S. mutual fund trade
organization, showed. 
    Funds that specialize in U.S. stocks attracted $4.2 billion
in new cash, reversing the prior week's outflows of $3.2
billion. Funds that specialize in non-U.S. stocks attracted over
$4 billion, marking their biggest inflows in eight weeks. 
    The benchmark Standard & Poor's 500 stock index rose
a modest 0.6 percent over the weekly period, still ending at a
record high after strong readings on U.S. consumer spending and
manufacturing. 
    Bond funds attracted $912 million in new cash, the second
straight week of inflows into the funds. The funds attracted
$2.7 billion in new cash the previous week, which marked their
first inflows in 15 weeks. 
    Funds that hold municipal bonds attracted $228 million in
new cash, the first inflows into the funds since mid-May 2013.
Analysts have attributed outflows from the funds to financial
struggles in Puerto Rico and Detroit. 
    Prices rose on benchmark 10-year U.S. Treasury notes over
the weekly reporting period, with yields falling 11 basis points
to 2.88 percent on weaker-than-expected U.S. jobs growth in
December and caution ahead of corporate results. 
    Hybrid funds, which can invest in stocks and fixed income
securities, attracted $951 million in new cash, the 15th
straight week of new cash into the funds but down from inflows
of $1.1 billion in the prior week. 
    The following table shows estimated ICI flows for the past
five weeks (all figures in millions of dollars):
                   12/18/13    12/23    12/31      1/8      1/15
 Total Equity           233    1,556    6,186     -417     8,280
    Domestic         -2,745      177    3,492   -3,220     4,237
    World             2,978    1,379    2,694    2,804     4,043
 Hybrid*                826      807    1,082    1,096       951
 Total Bond          -8,092   -3,882   -2,828    2,701       912
    Taxable          -5,569   -2,473     -456    3,048       684
    Municipal        -2,522   -1,409   -2,372     -347       228
 Total               -7,033   -1,519    4,439    3,380    10,143
 *Hybrid funds can invest in stocks and/or fixed income
securities. 
    

 (Reporting by Sam Forgione)