Portfolio - Mutual Funds

U.S. Equity Funds Post First Outflow This Year

by: Margarida Correia

Wednesday, March 6, 2013

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The long stretch of steady inflows that U.S. stock mutual funds enjoyed since the beginning of the year came to an abrupt end in late February, according to the latest statistics from the Investment Company Institute. For the week ended Feb. 27, investors pulled an estimated $1.13 billion from mutual funds that invest long-term in U.S. equities, giving the funds their first weekly outflow this year.

Inflows to non-U.S. stock funds, meanwhile, plummeted to an estimated $2.18 billion, down 37% from $3.47 billion a week earlier.

Bond funds were able to hold tight. For the week ended Feb. 27, bonds funds drew $4.99 billion in estimated inflows, up 6% from the $4.71 billion they took in the week before. Of the $4.99 billion, $4.41 billion went to taxable bond funds with the remaining $579 million going to municipal bond funds.

Hybrid funds, which invest in both stocks and fixed income securities, were up 18% for the week, drawing an estimated $2.39 billion.

All told, mutual funds attracted just $8.43 billion, the smallest weekly inflow so far this year.

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.