U.S. mutual fund investors flee domestic stocks in latest week -ICI

NEW YORK, Sept 12 (Reuters) - U.S. mutual-fund investors
sprinted out of domestic stocks at the fastest pace in nine
weeks as trade talks seemed to deteriorate and social media
executives were grilled by lawmakers, Investment Company
Institute (ICI) data showed on Wednesday.
Mutual fund investors pulled $8.1 billion from domestic
stock funds during the week ended Sept. 5, while exchange-traded
funds (ETFs) focused on the same market attracted $1.1 billion,
the trade group said.
ETFs are heavily trafficked by quick-trading investors while
mutual funds are more exclusively used by long-term retail
investors.
During the latest week, Canada and the United States
concluded trade talks without resolution, a report suggested
that the United States could impose even more tariffs on Chinese
goods and Facebook Inc and Twitter Inc
executives defended their companies before skeptical U.S.
lawmakers.
Despite record-high U.S. corporate earnings, investors
remain skittish around domestic stocks.
Overall, including both mutual funds and ETFs, bond funds
attracted $3.5 billion, marking their 29th straight week pulling
in cash. Stock funds posted $5.5 billion in withdrawals, the
lowest figure in nine weeks, according to the ICI.
Closely watched bond fund manager Jeffrey Gundlach on
Tuesday said global economic growth is slowing, but stopped
short of calling for a recession. He said he would avoid putting
new money in the market into the S&P 500 despite its
relatively strong performance versus international indexes.

Commodity funds, including those invested in gold, recorded
$411 million in withdrawals. It is the sixth straight week of
outflows for those products and comes as a rising dollar
this year has hurt demand for gold, which is priced in
dollars.
The following table shows estimated ICI flows for mutual
funds and ETFs (all figures in millions of dollars):
8/29 8/22 8/15 8/8 8/1/2018
Equity -684 3,021 779 -1,667 -3,011
Domestic -495 1,408 12 -3,408 -2,130
World -189 1,613 767 1,741 -882
Hybrid -1,367 -1,487 -1,479 -1,450 -2,271
Bond 4,416 4,596 1,675 6,857 5,844
Taxable 4,142 4,065 1,013 6,135 5,681
Municipal 273 531 662 723 163
Commodity -388 -532 -674 -450 -101
Total 1,977 5,598 301 3,289 461

(Reporting by Trevor Hunnicutt
Editing by James Dalgleish)


2018-09-12 18:10:29

© 2018 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.