Long-term mutual funds had an estimated $5.02 billion of inflows as investors added money to stock funds for the third time in four weeks, while hybrid and bond funds continued to bring in cash, according to the Investment Company Institute.
Bond funds have thrived, as they typically do in a lower interest-rate environment, while stock funds have failed to consistently attract new investment for more than a year. ICI posted an inflow streak during the summer in which nearly $50 billion was added to mutual funds, almost entirely on bond funds, before posting outflows at the end of August.
Meanwhile, funds in total have reported nine straight weeks of inflows, a combined $50 billion on an unrevised basis. Money has been added to the fund on a net basis for 22 of the past 23 weeks.
For the week ended Nov. 3, ICI reported that stock funds had inflows of $729 million, compared with outflows of $2.41 billion the prior week. U.S. equities had outflows of $1.13 billion, while $1.86 billion was added to foreign funds.
Last month, stock funds reported their first weekly increase since May, ending a 23-week streak that saw nearly $92 billion pulled from the funds. The recent trend of inflows was due to continued investment in foreign-focused funds, while outflows from domestic equities moderated.
At the same time, bond funds took in $3.54 billion, down from $5.35 billion the previous week, said ICI. Taxable funds had inflows of $3.14 billion and municipal ones added $405 million.
Investors also put $745 million into hybrid funds, compared with prior-week inflows of $356 million. Such funds can invest in both stocks and fixed-income assets.
Meanwhile, assets in money-market funds climbed by a net $15.92 billion in the week ended Tuesday as investors added money to prime and government funds, according to iMoneyNet.
IMoneyNet's seven-day yield on taxable money-market funds held steady at the record low of 0.03% for the third consecutive week. The yield has remained low after the Federal Open Market Committee last week said it would keep the target federal-funds rate for interbank lending in the range of 0% to 0.25% for "an extended period."
Cash rushed out of money-market funds in the first half of the year due to low yields, and despite a small reprieve during the summer, the fund flows have been mixed in recent months. Morningstar Inc. earlier Wednesday reported outflows continued for money-market funds in October, as investors redeemed a net $16.6 billion.
For the week ended Tuesday, total assets in money-market funds climbed to $2.784 trillion, said iMoneyNet.
Taxable funds grew $15.2 billion to $2.457 trillion as institutional investors added $17.33 billion and individual investors took out $2.13 billion. Prime funds, which invest in securities such as commercial paper, had $9.93 billion of inflows, while government funds had $5.27 billion added to them.
Tax-free funds had inflows of $718.2 million, putting asset totals at $327.09 billion. Yields for seven-day funds fell to 0.03% from 0.04% but held steady at 0.03% for 30-day funds.
source: online.wsj.com
Long-term mutual funds had an estimated $5.02 billion of inflows as investors added money to stock funds for the third time in four weeks, while hybrid and bond funds continued to bring in cash, according to the Investment Company Institute.
Bond funds have thrived, as they typically do in a lower interest-rate environment, while stock funds have failed to consistently attract new investment for more than a year. ICI posted an inflow streak during the summer in which nearly $50 billion was added to mutual funds, almost entirely on bond funds, before posting outflows at the end of August.
Meanwhile, funds in total have reported nine straight weeks of inflows, a combined $50 billion on an unrevised basis. Money has been added to the fund on a net basis for 22 of the past 23 weeks.
For the week ended Nov. 3, ICI reported that stock funds had inflows of $729 million, compared with outflows of $2.41 billion the prior week. U.S. equities had outflows of $1.13 billion, while $1.86 billion was added to foreign funds.
Last month, stock funds reported their first weekly increase since May, ending a 23-week streak that saw nearly $92 billion pulled from the funds. The recent trend of inflows was due to continued investment in foreign-focused funds, while outflows from domestic equities moderated.
At the same time, bond funds took in $3.54 billion, down from $5.35 billion the previous week, said ICI. Taxable funds had inflows of $3.14 billion and municipal ones added $405 million.
Investors also put $745 million into hybrid funds, compared with prior-week inflows of $356 million. Such funds can invest in both stocks and fixed-income assets.
Meanwhile, assets in money-market funds climbed by a net $15.92 billion in the week ended Tuesday as investors added money to prime and government funds, according to iMoneyNet.
IMoneyNet's seven-day yield on taxable money-market funds held steady at the record low of 0.03% for the third consecutive week. The yield has remained low after the Federal Open Market Committee last week said it would keep the target federal-funds rate for interbank lending in the range of 0% to 0.25% for "an extended period."
Cash rushed out of money-market funds in the first half of the year due to low yields, and despite a small reprieve during the summer, the fund flows have been mixed in recent months. Morningstar Inc. earlier Wednesday reported outflows continued for money-market funds in October, as investors redeemed a net $16.6 billion.
For the week ended Tuesday, total assets in money-market funds climbed to $2.784 trillion, said iMoneyNet.
Taxable funds grew $15.2 billion to $2.457 trillion as institutional investors added $17.33 billion and individual investors took out $2.13 billion. Prime funds, which invest in securities such as commercial paper, had $9.93 billion of inflows, while government funds had $5.27 billion added to them.
Tax-free funds had inflows of $718.2 million, putting asset totals at $327.09 billion. Yields for seven-day funds fell to 0.03% from 0.04% but held steady at 0.03% for 30-day funds.
source: online.wsj.com
