U.S.-based stock funds attract $8.3 billion -ICI

Wednesday, 22 Jan 2014 | 1:47 PM ET

NEW YORK, Jan 22 (Reuters) - Investors in U.S.-based mutual funds poured $8.3 billion into stock funds in the week ended Jan. 15, marking the biggest inflows in ten weeks on some strong U.S. economic reports, data from the Investment Company Institute showed on Wednesday. The inflows into stock funds reversed the prior week's outflows of $417 million, the first withdrawals from the funds in four weeks, the data from ICI, a U.S. mutual fund trade organization, showed. Funds that specialize in U.S. stocks attracted $4.2 billion in new cash, reversing the prior week's outflows of $3.2 billion. Funds that specialize in non-U.S. stocks attracted over $4 billion, marking their biggest inflows in eight weeks. The benchmark Standard & Poor's 500 stock index rose a modest 0.6 percent over the weekly period, still ending at a record high after strong readings on U.S. consumer spending and manufacturing. Bond funds attracted $912 million in new cash, the second straight week of inflows into the funds. The funds attracted $2.7 billion in new cash the previous week, which marked their first inflows in 15 weeks. Funds that hold municipal bonds attracted $228 million in new cash, the first inflows into the funds since mid-May 2013. Analysts have attributed outflows from the funds to financial struggles in Puerto Rico and Detroit. Prices rose on benchmark 10-year U.S. Treasury notes over the weekly reporting period, with yields falling 11 basis points to 2.88 percent on weaker-than-expected U.S. jobs growth in December and caution ahead of corporate results. Hybrid funds, which can invest in stocks and fixed income securities, attracted $951 million in new cash, the 15th straight week of new cash into the funds but down from inflows of $1.1 billion in the prior week. The following table shows estimated ICI flows for the past five weeks (all figures in millions of dollars):

12/18/13 12/23 12/31 1/8 1/15 Total Equity 233 1,556 6,186 -417 8,280 Domestic -2,745 177 3,492 -3,220 4,237 World 2,978 1,379 2,694 2,804 4,043 Hybrid* 826 807 1,082 1,096 951 Total Bond -8,092 -3,882 -2,828 2,701 912 Taxable -5,569 -2,473 -456 3,048 684 Municipal -2,522 -1,409 -2,372 -347 228 Total -7,033 -1,519 4,439 3,380 10,143 *Hybrid funds can invest in stocks and/or fixed income


(Reporting by Sam Forgione)