By Sam Forgione
NEW YORK, May 1 Investors in mutual funds based
in the United States pulled $608 million out of funds that hold
only U.S. stocks in the latest week, the Investment Company
Institute said on Wednesday.
The outflows from funds that hold only U.S. stocks in the
week ended April 24 came after the funds attracted $1.97 billion
in new cash the prior week, which was the greatest gain since
the end of January, said ICI, a U.S. mutual fund trade
Funds that hold international stocks, however, raked in
$1.91 billion in new cash over the reporting period, the most in
three weeks and up from inflows of $646 million the prior week.
Overall, the outflows from funds that hold only U.S. stocks
combined with the inflows into funds that hold international
stocks led to total inflows of $1.3 billion into stock funds,
the least in three weeks.
The pullback in demand for U.S. stocks came amid a rebound
in U.S. stock markets after a sharp selloff the prior week. The
benchmark S&P 500 rose 1.73 percent and the Dow Jones
Industrial Average rose 0.4 percent as companies such as
Google and Boeing posted solid earnings.
Markets did, however, suffer a hit to confidence after
hackers sent a message from the Twitter feed of the Associated
Press saying the White House had been hit by two explosions and
that Barack Obama was injured.
Bond funds gained demand with inflows of $5.76 billion, up
sharply from cash gains of $1.51 billion the prior week.
Municipal bond funds recovered from two weeks of outflows with
modest inflows of $133 million.
Hybrid funds, which can invest in stocks and fixed income
securities, attracted $1.36 billion in new cash, up slightly
from inflows of $1.31 billion the previous week.
The following table is a breakdown of estimated ICI flows
for the past five weeks (all figures in millions of dollars):
3/27/13 4/3/13 4/10/2013 4/17/2013 4/24/2013
Total Equity 3,822 1,257 1,544 2,620 1,299
Domestic 969 -1,824 378 1,973 -608
World 2,853 3,081 1,166 646 1,908
Hybrid* 1,819 1,147 1,365 1,305 1,358
Total Bond 3,446 6,436 1,731 1,513 5,763
Taxable 3,392 6,363 2,590 2,209 5,630
Municipal 54 73 -859 -696 133
Total 9,087 8,839 4,640 5,437 8,420
*Hybrid funds can invest in stocks and/or fixed income