TABLE-U.S. fund investors move cash to foreign stocks, most since May -ICI

NEW YORK, Aug 15 (Reuters) - U.S. fund investors turned up demand for bonds and global equities during the most recent week, but pulled back from domestic stocks, Investment Company Institute (ICI) data showed on Wednesday. Mutual funds and exchange-traded funds (ETFs) with a focus on international stocks brought in $1.74 billion, the most since May, according to ICI data collected over the week ended Aug. 8. But risk appetite did not extend to domestic equity funds, which posted $3.4 billion in withdrawals, the largest week of outflows in a month, according to the trade group. Investors instead accelerated a march into bond funds, shifting $6.14 billion into taxable bond funds and $723 million to municipal bond funds. "Fixed income on a relative basis has actually become fairly attractive," said Fritz Folts, chief investment strategist at 3EDGE Asset Management in Boston. "The strength of the dollar can allow long-term yields to remain stable for a while." During the week, investors wrestled with an intensifying dispute between the United States and China as well as Turkey, while strong corporate earnings helped lift Wall Street stock indexes. Apple Inc last week became the first publicly traded company with a market capitalization exceeding $1 trillion. So far this year, U.S.-based bond funds have collected an estimated $167 billion in cash deposits, while demand for equities is negative over that same period, ICI data showed. Weekly demand for commodity funds was the weakest in more than a month, with investors pulling out $450 million. The strong dollar and negative momentum have made commodities less attractive, Folts said.

The following table shows estimated ICI flows for mutual funds and ETFs (all figures in millions of dollars):

8/8 8/1 7/25 7/18 7/11 Equity -1,666 -3,011 419 1,494 -3,155 Domestic -3,407 -2,130 524 1,300 -1,546 World 1,741 -881 -105 195 -1,609 Hybrid -1,447 -2,268 -1,165 -1,829 -1,048 Bond 6,857 5,846 4,417 8,660 7,445 Taxable 6,135 5,682 3,817 6,894 6,416 Municipal 723 164 600 1,765 1,028 Commodity -450 -101 164 -308 101 Total 3,294 465 3,835 8,016 3,343

(Reporting by James Thorne; editing by Trevor Hunnicutt, G Crosse)