Fiscal cliff? What fiscal cliff?
Despite the possibility that Washington may not reach a compromise in time to ward off the fiscal cliff, markets ended the week ended Dec. 12 up more than 1.3%. On top of that, fund investors injected $12.7 billion into mutual funds and ETFs for the week, according to Lipper data.
Equity funds recovered their groove last week, dominating the buying with net sales of nearly $5 billion for the week.
But whereas ETFs received the majority of net inflows and achieved its third consecutive week of $7 billion or more inflows, equity mutual funds continued to post net redemptions. ETFs attracted $8.7 billion, while equity mutual lost $3.7 billion.
Taxable bond funds reported net inflows of $1.2 billion, with the majority of cash allocated to corporate investment-grade products. Their high-yield counterparts finished the period with net inflows of $259 million, a lower rate than for the two prior weeks.
Municipal debt funds enjoyed their sixth consecutive week of net inflows at $311 million, while money market funds attracted $4.0 billion.
All Bank Investment Consultant articles are archived after 7 days. REGISTER NOW for unlimited access to all recently archived articles, as well as thousands of searchable stories. Registered Members also gain access to exclusive industry white paper downloads, web seminars, blog discussions, the iPad App, CE Exams, and conference discounts. Qualified members may also choose to receive our free monthly magazine and any of our daily or weekly e-newsletters covering the latest breaking news, opinions from industry leaders, developing trends and growth strategies.