(Adds additional flows data; byline)
By Sam Forgione
NEW YORK, June 6 Fund investors worldwide poured
$4.3 billion into bond funds in the week ended June 4 while
pulling cash out of stock funds despite weaker performance in
bonds, data from a Bank of America Merrill Lynch Global Research
report showed on Friday.
The inflows marked the 13th straight week of net new demand
for bond funds. Emerging market bond funds attracted $2.2
billion, marking their biggest inflows since January 2013, while
investment-grade bond funds attracted $2.4 billion to notch
their 24th week of inflows.
Floating-rate debt funds, which are protected from rising
interest rates, posted $1.2 billion in outflows, marking their
biggest outflows since August 2011.
Investors pulled a net $2 billion out of stock funds,
reversing $1 billion in inflows over the prior week. Funds that
specialize in U.S. stocks, however, attracted $1.2 billion in
inflows, marking their first inflows in three weeks.
The bigger inflows into bond funds marked the third straight
week in which demand for the funds exceeded demand for stock
funds, despite weaker performance from bonds over the week.
Over the week ending June 4, U.S. Treasuries yields, which
move inversely to prices, rose to 2.6 percent, marking their
highest level in three weeks. Global equity markets hit an
Demand for funds that specialize in European stocks
rebounded to $1.3 billion in inflows after the previous week's
$200 million in outflows broke a record 47 consecutive weeks of
inflows into the funds.
Stock mutual funds posted $8 billion in outflows, while
stock exchange-traded funds attracted $6 billion in inflows,
according to the report, which also cited data from fund-tracker
EPFR Global. Mutual funds are commonly purchased by retail
investors, while ETFs are thought to represent the behavior of
Mutual funds are commonly purchased by retail investors,
while ETFs are thought to represent the behavior of
Funds that mainly hold emerging market stocks posted $300
million in outflows, marking their first outflows in four weeks.
Precious metals funds also lost favor and posted $700 million in
outflows, marking their biggest outflows since January.
(Reporting by Sam Forgione; Editing by Chizu Nomiyama and W