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US-based stock funds attract US$1.1b inflows in latest week: ICI
[NEW YORK] Investors in US-based mutual funds committed US$1.14 billion to stock funds in the week ended Jan 21, pouring money into domestic stock funds for the first time since November, data from the Investment Company Institute showed on Wednesday.
Domestic stock mutual funds attracted US$856 million of inflows, according to the ICI data, a US mutual fund trade organization. The inflows came after nine straight weeks of withdrawals from such funds.
Funds specializing in international stocks attracted inflows of US$288 million.
"With the new year you're seeing cash being deployed," said Alan Lancz, president of investment advisory firm Alan B Lancz & Associates Inc in Toledo, Ohio.
After some volatility at the start of the year, he said, investors are deciding how to commit new cash.
Domestic equity funds could particularly benefit if geopolitical risks, such as in Russia or in the eurozone, weigh on investors, he said.
"If even just rumours are resurrected that there's trouble, you'll get that safe haven effect," he added.
Bond funds attracted a second straight week of inflows, drawing US$1.1 billion, but the total was down from the previous week.
Hybrid funds, which can invest in stocks and fixed income securities, attracted US$790 million, up from US$248 million in the previous week.