US Mutual Fund Investors Up Their Bond Fund Allocation by $2.25 billion

ICI data shows increased inflows into taxable bond funds as mutual fund investors seek safe havens from the economic growth slowdown in the US and the eurozone crisis.
By None

Investment Company Institute(ICI) US mutual fund data shows investors injected $6.47 billion into bond funds during the week ended Wednesday November 16, compared to $4.22 billion during the previous week. Slower economic growth in the US and the eurozone crisis have triggered declines in the major stock market indices, including a 3.8% decline in the S&P 500 last week. Concurrently, investors have been moving into safer securities.

Taxable bond funds saw estimated inflows of $5.56 billion during the week ended November 16, while municipal bond funds had estimated inflows of $911 million.

Equity funds had estimated outflows of $1.26 billion for the week ended November 16, compared to estimated outflows of $4.63 billion in the previous week. Domestic equity funds had estimated outflows of $135 million, while estimated outflows from foreign equity funds were $1.13 billion. Hybrid funds, which can invest in stocks and fixed income securities, had estimated outflows of $4.59 billion for the week, compared to estimated inflows of $1.27 billion in the previous week.

Total estimated inflows to long-term mutual funds were $625 million for the week ended November 16, the ICI reported.

(JDC)

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