October 30, 2014 / 10:55 PM / 5 years ago

UPDATE 1-US-based stock funds attract $8.8 bln over week, all in ETFs

(Adds analyst comments, table, byline)
    By Luciana Lopez
    NEW YORK, Oct 30 (Reuters) - Investors in U.S.-based funds
added a net $8.8 billion to stock funds in the week ended Oct.
29, the largest amount since the week ended Aug. 20, data from
Thomson Reuters' Lipper service showed on Thursday.
    The net inflows were entirely in money that poured into
stock exchange traded funds, which saw net inflows of $9.7
billion in the week. In contrast, stock mutual funds saw net
outflows of $947 million.
    The data underscored a pattern for much of the year in which
retail investors, commonly thought to be mutual fund buyers,
behave differently from institutional investors, as represented
by exchange-traded funds.
    "Retail investors are much slower to pull the trigger to
change their opinion," said Tom Roseen, head of research
services at Lipper. "I think they've been kind of spooked by
what happened in October," when volatility increased, he added. 
 
    The benchmark S&P 500 stock index rose about 3
percent from its close on Oct. 22 through Oct. 29.
    Investors were still redirecting cash to rivals of Pimco,
following the exit from Pimco in late September of Bill Gross,
as U.S.-based taxable bond funds posted net inflows of $6.4
billion in the week ended Wednesday, the sixth straight week of
inflows.
    The $2.3 billion Sonoma County Employees' Retirement
Association is seeking to replace Pimco's unconstrained
fixed-income fund, senior investment officer James Failor told
Reuters on Thursday.
    The plan terminated Pimco at its Oct. 16
investment meeting from a $65 million unconstrained fixed-income
mandate due to organizational changes surrounding the departure
from Pimco of co-founder Gross. [ID: nL1N0SP3EM]
    Meanwhile, money market funds attracted net inflows of $1.8
billion, and corporate high-yield bond funds attracted $1.6
billion in net new cash over the week. 
    Emerging market equity funds attracted $925 million in new
money while European equity funds saw investors withdraw a net
$263 million.    
    
 Sector                    Flow Chg  % Assets  Assets     Count
                           ($Bil)              ($Bil)     
 All Equity Funds          8.774     0.22      4,160.164  11,019
 Domestic Equities         8.032     0.27      3,098.672  8,014
 Non-Domestic Equities     0.742     0.07      1,061.491  3,005
 All Taxable Bond Funds    6.409     0.34      1,873.571  5,625
 All Money Market Funds    1.775     0.08      2,172.130  1,294
 All Municipal Bond Funds  0.037     0.01      313.910    1,429
 
 (Reporting by Luciana Lopez; Editing by Chris Reese and Leslie
Adler)
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