NEW YORK Dec 1 Investors poured $31.6 billion
into all equity mutual funds and exchange-traded funds in
November, favoring equities over bonds for a sixth straight
month, data from TrimTabs Investment Research showed on Sunday.
However, flows into equities moderated from October, with
flows into exchange traded funds picking up, and investors
favored U.S. equity funds over offshore funds.
"Equity fund flows shifted in two key ways last month," said
TrimTabs chief executive David Santschi. "First, inflows were
not as strong as they were in October, when all equity mutual
funds and ETFs received $53.2 billion, the fourth-highest
monthly inflow on record. Second, they were not skewed heavily
toward offshore stocks."
TrimTabs said the tilt from offshore stocks may have been
due to the outperformance of U.S. mutual funds over the last two
months. The average U.S. equity fund gained 5.8 percent over the
period, beating the average global equity fund, which gained 2.4
percent in the past two months.
U.S. equity funds and exchange-traded funds attracted $17.5
billion, compared to $14.1 billion that flowed into global
equity mutual funds and ETFs.
Investors kept dumping bonds, redeeming $21.8 billion from
bond mutual funds and ETFs, the biggest outflow since $36.8
billion in August and the fifth-highest monthly outflow on
record. Four of the six biggest monthly outflows from bond funds
have happened this year, TrimTabs noted.
The S&P 500 is up 27 percent so far this year.
TrimTabs said indicators point to a rise in equity markets to
the end of the year.
"Our liquidity indicators suggest stock prices can keep
cruising higher into the New Year, and we advise investors to
keep buying any dips," said Santschi.
New offerings by corporations selling shares in the United
States fell to an eight-week low of $4.3 billion. TrimTabs said
it expects this to increase in the weeks ahead as corporate
sellers have one week less than usual to do deals between
Thanksgiving and Christmas.
Corporate buybacks fell to their lowest level since January.
Announced corporate buying exceeded new offerings by $11.2
billion in October and $16.2 billion in November.