By Sam Forgione
NEW YORK, April 16 Investors in U.S.-based
mutual funds poured $5.7 billion into stock funds in the week
ended April 9 even as equity markets were hit with sharp selling
that weighed on tech and biotech shares, data from the
Investment Company Institute showed on Wednesday.
The inflows into stock funds marked the strongest demand for
the funds since mid-February, according to data from ICI, a U.S.
mutual fund trade organization. This trounced inflows of $1.6
billion into bond funds.
Funds that specialize in U.S. stocks attracted about $2.1
billion of the net inflows into stock funds, marking their
biggest inflows in six weeks. Funds that mainly hold non-U.S.
stocks attracted $3.6 billion, marking their strongest turnout
While the Standard & Poor's 500 stock index fell 1
percent over the weekly period, MSCI's index of global emerging
market stocks rose 1 percent. Analysts have said that
the prospect of fresh stimulus in China and the euro zone have
helped boost emerging market stocks.
The inflows into bond funds, while down from the previous
week's $3.4 billion in inflows, marked the ninth straight week
of inflows into the funds. Analysts have said that demand for
bonds has recovered after record annual outflows in 2013 given
outperformance in bonds this year.
The benchmark Barclays U.S. Aggregate bond index is up 2.6
percent this year through Tuesday, while the S&P 500 is down 0.3
percent over the same period.
Hybrid funds, which can invest in stocks and fixed income
securities, attracted $1.5 billion in new cash, marking a
recovery in demand after inflows of $220 million the previous
week, which marked the weakest turnout since late last year.
The following table shows estimated ICI flows for the past
five weeks (all figures in millions of dollars):
3/12/2014 3/19 3/26 4/2 4/9
Total equity 4,223 -987 1,233 3,137 5,724
Domestic 1,904 -3,823 -267 945 2,076
World 2,319 2,836 1,500 2,191 3,647
Hybrid* 1,994 1,857 1,013 220 1,529
Total bond 5,303 2,470 1,232 3,362 1,577
Taxable 4,742 2,233 1,190 3,162 1,415
Municipal 561 237 42 200 162
Total 11,520 3,340 3,479 6,719 8,830
*Hybrid funds can invest in stocks and/or fixed income
(Reporting by Sam Forgione; Editing by Chizu Nomiyama)