| July 12
July 12 Investors regained confidence in stock
funds over the latest week and poured $11.8 billion into U.S.
equity funds, their biggest weekly inflows since September 2011,
data from EPFR Global showed on Friday.
Europe equity funds gained $2 billion, their greatest weekly
inflow since May 2012, and all equity funds tracked by EPFR
added a net $13.6 billion during the week ended July 10. Japan
equity funds took in $689 million to extend their inflow streak
to 26 weeks.
The benchmark S&P 500 index rose 2.3 percent over
EPFR's reporting period on improved economic data, anticipation
of a better-than-expected earnings season and reduced concern
about cuts to the Federal Reserve's massive monetary stimulus.
"I think the data shows some faith in the U.S. recovery and
an easing of the angst caused by the Fed's fairly definitive
statements about wanting to taper QE3," said Cameron Brandt,
director of research for EPFR Global in Cambridge,
"The U.S. in many ways is the best-looking economic story
among a lot of not really great ones at the moment."
Fixed-income fared less well in the latest week, with
investors redeeming $2.69 billion from all bond funds tracked by
EPFR. Investors yanked just over $1 billion of that total from
municipal bond funds, which have seen outflows for seven
straight weeks and had more than $11 billion redeemed since the
beginning of June.
High-yield bond funds, on the other hand, gained $760
million for their second straight week of inflows.
Bonds prices fell over the last week as the yield on the
benchmark 10-year Treasury climbed 17.1 basis points
to 2.674, at one point reaching as high as 2.7550.
Investors remained wary of the prospects for emerging
markets, though the MSCI emerging stocks index edged
up 0.4 percent during EPFR's reporting period. Combined outflows
from emerging markets equity and bond funds surpassed $3 billion
for the fifth time in the past six weeks.
Money market funds gained $34.5 billion, a 27-week high,
with more than two-thirds of that total going into U.S. money
Gold funds suffered outflows of $1.4 billion for the tenth
time in the past 15 weeks. Commodities sector funds had
redemptions of $1.7 billion after notching their biggest
quarterly outflow on record for the second quarter of 2013.
EPFR Global tracks over 49,000 mutual funds worldwide that
include ETFs and alternative funds and make up $20.5 trillion in
assets under management.