Portfolio - Mutual Funds

Inflows to U.S. Equity Funds Ebb Dramatically

by: Margarida Correia

Wednesday, February 13, 2013

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Inflows to U.S. equity funds ebbed dramatically in early February after a strong rebound at the beginning of the year, according to the latest statistics from the Investment Company Institute. For the week ended Feb. 6, investors steered a meager $683 million into mutual funds that invest long-term in U.S. stocks, a fraction of the $3.52 billion they poured into the funds a week earlier.

Investors were more generous with non-U.S. funds, sending an estimated $5.09 billion their way.

Hybrid funds, which invest in both stocks and fixed income securities, also took in more than U.S. stock funds, posting $2.02 billion in estimated inflows.

Bond funds were the biggest winners of the week, taking in an estimated $6.00 billion, 71% more than the $3.50 billion they attracted a week earlier.  Of the $6.00 billion, an estimated $5.42 billion went to taxable bond funds with the remaining $580 million going to municipal bond funds.

All told, mutual funds drew $13.79 billion in estimated inflows, besting last year’s record $13.18 billion inflow also in early February. 

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.