By Sam Forgione
NEW YORK, June 4 Investors in U.S.-based mutual
funds pulled $2.4 billion out of stock funds in the week ended
May 28, as the rise in U.S. stocks to record highs made
investors cautious, data from the Investment Company Institute
showed on Wednesday.
The outflows were the biggest in four weeks, the data from
ICI, a U.S. mutual fund trade organization, showed. Bond funds
attracted $2.1 billion in inflows, marking their 16th straight
week of new demand.
Funds that specialize in U.S. stocks posted $2.6 billion in
outflows, while funds that mainly hold stocks of companies
outside the United States attracted a meager $149 million in new
cash, marking the smallest inflows in four weeks.
The outflows underscored analysts' views that investors are
cautious that U.S. shares may pull back from record highs. The
benchmark S&P 500 stock index rallied 1.2 percent over
the period on strong U.S. economic data on factory activity,
housing, and durable goods orders.
The inflows into bond funds showed consistent demand after
record outflows in 2013. Investors are reaching for yield in
bonds; the benchmark 10-year U.S. Treasury note yield fell to
2.434 percent on May 28, the lowest level since last July. Bond
yields move inversely to prices.
Hybrid funds, which can invest in stocks and fixed-income
securities, attracted $1.1 billion in new money, marking their
third straight week of inflows.
The following data shows estimated ICI flows for the past
five weeks (all figures in millions of dollars):
4/30/2014 5/7 5/14 5/21 5/28
Total equity -3,386 762 -1,075 701 -2,447
Domestic -3,492 -1,879 -2,317 -1,779 -2,596
World 106 2,641 1,242 2,480 149
Hybrid* 759 -402 1,146 1,110 1,093
Total bond 888 5,548 4,074 2,290 2,071
Taxable 559 4,472 3,178 1,492 1,259
Municipal 329 1,076 897 798 812
Total -1,738 5,908 4,146 4,102 717
*Hybrid funds can invest in stocks and/or fixed-income
(Reporting by Sam Forgione; Editing by Leslie Adler)