By Sam Forgione NEW YORK, March 7 Investors poured $5.67 billion in new cash into U.S.-based stock funds in the latest week, the largest in four weeks, as the Dow Jones industrial average surged to a record high, data from Thomson Reuters' Lipper service showed on Thursday. "The signal of the Dow hitting its all-time high feeds into investors' recent enthusiasm for stock funds," said Matthew Lemieux, analyst at Lipper. Among the total inflows into stock funds, exchange-traded funds captured $2.5 billion of the total demand in the week ended March 6, while stock mutual funds took in $3.17 billion. The big inflows show that investors pounced on equities in the wake of the Dow hitting a record high of 14,253.77 points on March 4. Over $4 billion of the new money into stock funds made their way into portfolios that hold U.S. stocks, the most in five weeks. Mutual funds and ETFs that hold stocks of companies outside the U.S., meanwhile, attracted less than half that amount with $1.62 billion in new cash. The demand into stock funds did not, however, cut into cash commitments toward taxable bond funds, which reached a strong $5.26 billion over the weekly reporting period. Those were the largest cash gains since early November. The demand for bond funds showed a renewed hunger for yield, as investors gave new money to "floating rate" corporate loan funds and high-yield "junk" bond funds. "Investors, once again, really focused on yield," said Lemieux of Lipper. Investors gave $820 million in new cash to high-yield bond funds after four weeks of redemptions. They also gave $1.1 billion to corporate loan funds, but vowed for some safety in investment-grade corporate bond funds with $800 million in new cash commitments. In the latest week, investors shrugged off risks to the U.S. economy stemming from $85 billion in federal spending cuts and political stalemate in Italy to drive record rallies in the Dow Jones Industrial Average. The index closed at a record high on March 4 of 14,253.77 points, breaking the Oct. 9, 2007 closing record which preceded the 2008 credit crisis and recession. The index then surpassed that record on Mar. 5, when it closed at 14,296.24. The index is up 9.35 percent so far this year. The U.S. Federal Reserve's easy monetary policy and commitment to keeping short-term interest rates near zero fueled the rally, along with the European Central Bank's pledge to maintain a loose monetary policy. The Federal Reserve is currently buying $85 billion in bonds each month and has said it plans to keep purchasing assets until it sees a substantial improvement in the outlook for the labor market. Fed Chairman Ben Bernanke defended the stimulus program in his testimony before the Senate Banking Committee on Feb. 26. Vice chairwoman Janet Yellen also backed the aggressive stimulus effort on March 4. The benchmark S&P 500 also rose 1.7 percent over the reporting period on upbeat signs of a strengthening U.S. recovery. A drop in new U.S. claims for jobless benefits, growth in U.S. factory activity, and a rise in consumer sentiment in February boosted sentiment early in the week. Data showing that the U.S. services sector expanded at its fastest pace in a year in February and that private sector hiring picked up over the month also supported the market rally. The positive data- together with the belief that global central banks such as the Fed, ECB, Bank of Japan, and Bank of England would keep monetary stimulus in place- muted concerns of the "sequester" spending cuts and worries that Italy's political turmoil could worsen the euro zone debt crisis. The S&P 500 has risen 8.3 percent so far this year. The rally over the latest week pushed the index to just 1.5 percent below its record close on Mar. 6. That day, the benchmark 10-year Treasury also fell in price to yield 1.94 percent at the close of trading. The weekly Lipper fund flow data is compiled from reports issued by U.S.-domiciled mutual funds and exchange-traded funds. The following is a broad breakdown of the flows for the week, including exchange-traded funds (in $ billions): ector Flow Chg % Assets Count ($Bil) Assets ($Bil) All Equity Funds 5.672 0.19 3,084.937 10,130 Domestic Equities 4.049 0.18 2,306.195 7,513 Non-Domestic Equities 1.624 0.21 778.741 2,617 All Taxable Bond Funds 5.256 0.34 1,567.084 4,870 All Money Market Funds -12.884 -0.54 2,354.584 1,367 All Municipal Bond Funds -0.097 -0.03 325.387 1,361
REFILE-India's Infosys says reassessing long-term goals due to tougher market
Bengaluru, June 24 Infosys Ltd, India's second-biggest software services exporter, is re-evaluating its long-term targets because tougher market conditions have made them appear "daunting", the company's chairman said on Saturday.