December 7, 2016 / 5:51 PM / 8 months ago

U.S.-based stock mutual funds net cash for 1st time in 9 months -ICI

By Trevor Hunnicutt
    NEW YORK, Dec 7 (Reuters) - Investors put more money into
U.S.-based stock mutual funds than they withdrew for the first
time since March, Investment Company Institute data showed on
Wednesday, signs of a thaw for the out-of-favor investments
since the U.S. presidential election.
    The funds took in $32 million during the eight days through
Nov. 30, according to the data, which included the U.S.
Thanksgiving holiday.
    "After a long drought, investors have come back to mutual
funds," said Todd Rosenbluth, director of ETF and mutual fund
research at CFRA. "While the inflows are still less than for
ETFs, this is a sign of broader participation in the equity
markets as the stock market continues to reach high levels."
    Stock mutual funds are closing out their worst year of sales
 since the financial crisis in 2008, bleeding $196 billion this
year through October, earlier ICI data showed. Investors pulled
$216 billion from the funds in 2008.
    Funds whose managers actively choose the companies they
invest in have notched lackluster performance against relatively
low-cost index funds that merely track the market.
    But U.S. stock market indexes have scaled new peaks since
the Nov. 8 U.S. election on hopes that fiscal stimulus and fewer
regulations under the incoming Donald Trump administration could
boost growth.
    New sectors have come into favor, including banks, giving
portfolio managers new opportunities to improve performance.
    Meanwhile, bonds, which had been popular this year, have
been hurt on inflation fears.
    Including ETFs, many of which track an index, stock funds
attracted $2.7 billion during the week.
    Bond funds posted $4.1 billion in their third straight 
weekly period of withdrawals.
    The following table shows estimated ICI flows, including
ETFs (all figures in millions of dollars):
              11/30   11/22   11/16    11/9  11/2/2016
 Equity       2,710   9,178  21,468  -7,551     -8,297
 -Domestic    2,776   6,931  23,161  -6,321     -6,824
 -World         -66   2,246  -1,693  -1,230     -1,473
 Hybrid        -986    -792  -1,757  -3,301     -1,874
 Bond        -4,120  -1,723  -9,715   2,757     -4,597
 -Taxable      -657     792  -5,031   2,867     -4,591
 -Municipal  -3,463  -2,515  -4,684    -110         -6
 Commodity     -854  -1,647  -1,860     637        313
 Total       -3,251   5,016   8,136  -7,458    -14,455
 
 (Reporting by Trevor Hunnicutt; Editing by James Dalgleish)

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