By Sam Forgione
NEW YORK, Aug 20 Investors in U.S.-based mutual
funds poured money back into bond funds in the week ended Aug.
13, mostly into municipal bond funds, following their biggest
weekly outflows in nearly a year, data from the Investment
Company Institute showed on Wednesday.
Bond funds had estimated inflows of $1.42 billion in the
latest reporting week, compared with estimated outflows of $8.20
billion the previous week. Taxable bond funds attracted
estimated inflows of $519 million, and municipal bond funds had
estimated inflows of $897 million, according to data from ICI, a
U.S. mutual fund trade organization.
"A return to inflows this week suggests to me that last
week's net withdrawals were a reaction to two weeks of negative
performance and not a hint of more withdrawals in the coming
weeks," said Jeff Tjornehoj, head of Lipper Americas Research.
"We've had a couple of weeks like this in 2014 and each time
investors recover quickly from a brief panic attack and plow
money back into bond funds."
Investors also showed some appetite for equity funds.
They had estimated inflows of $224 million for the week
ended Aug.13, compared with estimated outflows of $427 million
in the previous week. Domestic equity funds had estimated
outflows of $1.07 billion, and world equity funds had estimated
inflows of $1.30 billion.
Hybrid funds, which can invest in both stocks and
fixed-income securities, had estimated inflows of $395 million
for the week, compared with estimated outflows of $413 million
in the previous week.
The following is a breakdown of estimated ICI flows for the
past five weeks (all figures in millions of dollars):
8/13 8/6 7/30 7/23 7/16
Total equity 224 -427 204 -1,144 -2,243
Domestic -1,070 -3,069 -1,257 -3,260 -3,951
World 1,295 2,642 1,462 2,116 1,708
Hybrid* 395 -413 1,024 1,123 917
Total bond 1,416 -8,204 1,806 1,457 2,469
Taxable 519 -8,658 1,119 573 1,973
Municipal 897 454 687 884 497
Total 2,035 -9,044 3,035 1,437 1,143
* Hybrid funds can invest in stocks and/or fixed-income
(Reporting by Sam Forgione; Editing by Leslie Adler)