(Adds flows, analyst comments, market performance, table)
By Sam Forgione
NEW YORK, July 17 Investors in U.S.-based funds
poured $4.3 billion into stock funds in the week ended July 16,
encouraged by strong corporate earnings and big potential merger
deals in the United States, data from Thomson Reuters' Lipper
service showed on Thursday.
The net inflows were the biggest in four weeks. Stock
exchange-traded funds accounted for all the inflows, at $4.4
billion, while stock mutual funds posted outflows of $70.5
ETFs are thought to represent the behavior of institutional
investors, while mutual funds are typically purchased by retail
The SPDR S&P 500 ETF Trust attracted most of the new
cash with inflows of $4.1 billion. The ETF mimics the benchmark
S&P 500 stock index, which rose a modest 0.4 percent over
the weekly period.
Japanese stock funds posted $411 million in outflows,
marking their first outflows in four weeks.
"Corporate earnings from some of the major banks boosted
confidence in equities," said Patrick Keon, research analyst at
Lipper, referring to second-quarter profits from JPMorgan Chase
and Goldman Sachs, both of which beat analysts'
Keon said an environment of deal-making also helped drive
inflows into stock funds. Time Warner Inc shares jumped
Wednesday after Twenty-First Century Fox confirmed it
made an $80 billion takeover offer for the company that was
Taxable bond funds attracted $2 billion in inflows, marking
their biggest inflows in three weeks. Solid performance has
driven inflows into the funds this year. The benchmark Barclays
U.S. Aggregate Bond Index is up 3.7 percent this year.
Municipal bond funds attracted $158 million after $790
million in outflows the prior week. Riskier high-yield bond
funds posted $1.7 billion in outflows, marking their biggest
outflows since August 2013, while floating-rate loan funds
posted $440 million in outflows after attracting inflows the
Outflows of $9 billion from low-risk money market funds, the
first withdrawals in four weeks, showed investors removing cash
from the safe funds and putting it to work in stock funds.
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):
Sector Flow Chg % Assets Count
($Bil) Assets ($Bil)
All Equity Funds 4.307 0.10 4,249.735 10,868
Domestic Equities 3.360 0.11 3,140.806 7,912
Non-Domestic Equities 0.947 0.09 1,108.928 2,956
All Taxable Bond 1.983 0.11 1,815.608 5,498
All Money Market -9.026 -0.39 2,279.641 1,315
All Municipal Bond 0.158 0.05 291.757 1,429
(Reporting by Sam Forgione; Editing by Bernard Orr and Leslie