Mutual Funds Get Their Groove Back
June 20, 2012
Investors piled back into mutual funds after a severe market pullback in early June, according to the latest statistics from the Investment Company Institute. For the week ended June 13, investors placed an estimated $5.46 billion into virtually all categories of mutual funds, more than compensating for the previous week’s $1.55 billion outflow.
Bond funds attracted the lion’s share, raking in $3.60 billion for the week, more than double the $1.58 billion inflow a week earlier. Of the $3.60 billion, $2.99 billion went to taxable bond funds with the remaining $604 million going to municipal bond funds.
Non-U.S. equity funds were the second biggest recipients of the latest weekly inflow, taking in an estimated $1.51 billion, up 12% from the $1.35 billion inflow a week earlier.
U.S. equity funds, however, remained in the dumps, losing an estimated $620 million, the only fund category to post an outflow for the week. The good news is that the outflow slowed from the previous week’s massive $3.26 billion outflow.
Hybrid funds — those that invest in both stocks and fixed income securities — received $966 million in estimated inflows, reversing the previous week’s $1.23 billion outflow.
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.