U.S.-based bond funds attract $2.3 bln in latest week - ICI

Wed Apr 30, 2014 1:19pm EDT

NEW YORK, April 30 (Reuters) - Investors in U.S.-based
mutual funds committed $2.3 billion to bond funds in the week
ended April 23 on continued outperformance in bonds this year,
data from the Investment Company Institute showed on Wednesday. 
    The inflows into bond funds more than tripled the previous
week's inflows of $659 million, which were the lowest inflows in
10 weeks, according to data from ICI, a U.S. mutual fund trade
organization. Stock funds attracted $3.5 billion in the latest
    The inflows marked the 11th straight week of new demand for
bond funds. Municipal bond funds attracted $531 million, marking
their biggest inflows in six weeks, while taxable bond funds
attracted $1.7 billion, marking their biggest inflows in three
    Analysts have said that outperformance in bonds this year
has lured investors back into the funds after massive outflows
in 2013. The benchmark Barclays U.S. Aggregate bond index is up
2.45 percent this year through Tuesday, beating the Standard &
Poor's 500 stock index's gain of 1.6 percent over the
same period. 
    Funds that specialize in U.S. stocks attracted $1.4 billion
of the net inflows into stock funds, while funds that mainly
hold non-U.S. stocks attracted $2.1 billion. 
    The benchmark S&P 500 recovered 0.7 percent over the
holiday-shortened weekly period after some strong corporate
earnings from companies such as General Electric Co and
Netflix Inc drove a rebound in equities. The index had
fallen 1.5 percent over the previous two weeks. 
    Hybrid funds, which can invest in stocks and fixed income
securities, attracted $944 million in new cash, marking their
lowest inflows in three weeks. 
    The following data shows estimated ICI flows for the past
five weeks (all figures in millions of dollars):
                 3/26/2014      4/2      4/9     4/16     4/23
 Total equity        1,257    3,167    5,764    2,286    3,531
    Domestic          -266      950    2,084      634    1,392
    World            1,523    2,217    3,681    1,652    2,138
 Hybrid*             1,013      220    1,529    1,165      944
 Total bond          1,232    3,412    1,576      659    2,279
    Taxable          1,190    3,162    1,415      630    1,748
    Municipal           42      250      161       29      531
 Total               3,502    6,799    8,870    4,111    6,753
 *Hybrid funds can invest in stocks and/or fixed income

 (Reporting by Sam Forgione; Editing by James Dalgleish)