US-based bond funds post inflows of $1.42 bln in latest week -ICI

Wed Aug 20, 2014 11:50am EDT

By Sam Forgione
    NEW YORK, Aug 20 (Reuters) - Investors in U.S.-based mutual
funds poured money back into bond funds in the week ended Aug.
13, mostly into municipal bond funds, following their biggest
weekly outflows in nearly a year, data from the Investment
Company Institute showed on Wednesday.
    Bond funds had estimated inflows of $1.42 billion in the
latest reporting week, compared with estimated outflows of $8.20
billion the previous week. Taxable bond funds attracted
estimated inflows of $519 million, and municipal bond funds had
estimated inflows of $897 million, according to data from ICI, a
U.S. mutual fund trade organization. 
    "A return to inflows this week suggests to me that last
week's net withdrawals were a reaction to two weeks of negative
performance and not a hint of more withdrawals in the coming
weeks," said Jeff Tjornehoj, head of Lipper Americas Research.
"We've had a couple of weeks like this in 2014 and each time
investors recover quickly from a brief panic attack and plow
money back into bond funds."
    Investors also showed some appetite for equity funds.
    They had estimated inflows of $224 million for the week
ended Aug.13, compared with estimated outflows of $427 million
in the previous week. Domestic equity funds had estimated
outflows of $1.07 billion, and world equity funds had estimated
inflows of $1.30 billion.
    Hybrid funds, which can invest in both stocks and
fixed-income securities, had estimated inflows of $395 million
for the week, compared with estimated outflows of $413 million
in the previous week.

    The following is a breakdown of estimated ICI flows for the
past five weeks (all figures in millions of dollars):
    
                    8/13       8/6      7/30      7/23      7/16
 Total equity        224      -427       204    -1,144    -2,243
    Domestic      -1,070    -3,069    -1,257    -3,260    -3,951
    World          1,295     2,642     1,462     2,116     1,708
 Hybrid*             395      -413     1,024     1,123       917
 Total bond        1,416    -8,204     1,806     1,457     2,469
    Taxable          519    -8,658     1,119       573     1,973
    Municipal        897       454       687       884       497
 Total             2,035    -9,044     3,035     1,437     1,143
 * Hybrid funds can invest in stocks and/or fixed-income
securities.

 (Reporting by Sam Forgione; Editing by Leslie Adler)
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