- Bank Channel

U.S. Stock Funds Lose $1.6 Billion

by: Margarida Correia

Wednesday, May 2, 2012

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Investors delivered yet another blow to U.S. stock mutual funds, according to the latest statistics from the Investment Company Institute. For the week ended April 25, investors yanked an estimated $1.60 billion from mutual funds that invest long-term in U.S. stocks, the only mutual fund category to post an outflow. The outflow comes on top of the blockbuster $8.68 billion that was pulled from the funds a week earlier. Since the beginning of the year, U.S. mutual funds have lost more than $31 billion.

Investors instead rewarded foreign stock funds, sending an estimated $2.53 billion their way for the week. The infusion was down 71% from the mega $8.72 billion inflow a week earlier.

Bond funds again were the biggest winners, receiving estimated inflows of $5.68 billion, up 17% from the week before. Of the $5.68 billion, $4.85 billion went to taxable bond funds with the remaining $825 million going to municipal bond funds.

Hybrid funds — those that invest in both stocks and fixed income securities — posted estimated inflows of $995 million, down from the $1.21 billion inflow the previous week.

Overall, mutual funds took in an estimated $7.60 billion in fresh infusions for the week, up 25% from the $6.10 billion inflow a week earlier.

The weekly fund flow estimates are derived from data covering more than 95% of industry assets, according to ICI. The statistics cover long-term mutual funds, those the ICI defines as investing in long-term instruments.