November 21, 2018 / 6:02 PM / 22 days ago

U.S. fund withdrawals peter out in latest week -ICI

    By Trevor Hunnicutt
    NEW YORK, Nov 21 (Reuters) - Investors appeared close to
suspending their onslaught on U.S.-based stock and bond funds,
nearly bringing an end to nearly two months of withdrawals
during the latest week, Investment Company Institute (ICI)
showed on Wednesday.
    Overall, U.S.-based mutual funds and exchange-traded funds
(ETFs) recorded $96 million in withdrawals during the week ended
Nov. 14, according to the trade group, a close-to-flat result
after seeing tens of billions of dollars bleed out since late
September in eight straight weeks of withdrawals.
    Fears about the resilience of U.S. corporate profit growth
in the face of tariffs and Federal Reserve rate hikes have kept
pressure on both stocks and bonds in recent weeks. The average
U.S.-based stock fund is down 5.6 percent this year while the
typical bond fund has fallen 1.4 percent, according to
Refinitiv's Lipper research service.
    Helping fund sales in the most recent week was a rebound in
demand for domestic stock funds, which attracted $2.7 billion
after withdrawals nearing $4 billion the prior week, ICI said.
    Weighing on stocks, oil prices saw their longest stretch of
daily declines since 1984 on rising global supply and evidence
of a slowing world economy. Apple Inc shares fell 10
percent as several suppliers to the company cut their forecasts.
 But some investors saw an opportunity to buy the
dip in the equity market.
    Bond funds, which many investors expect to be a source of
stability, continue to face withdrawals. More than $2.3 billion
was pulled out of those products in the most recent week.
Commodity funds, which invest in gold and other safe-haven
assets, attracted $413 million, the most since April, according
to the ICI.
    The following table shows estimated ICI flows for mutual
funds and ETFs (all figures in millions of dollars):
                11/14    11/7    10/31   10/24  10/17/2018
 Equity         3,970    -168    5,641   3,054     -12,822
    Domestic    2,679  -3,971    6,376   4,012     -14,426
    World       1,291   3,802     -735    -958       1,605
 Hybrid        -2,166  -2,990   -3,438  -2,215      -2,574
 Bond          -2,313     793  -18,605  -7,044      -5,636
    Taxable    -1,543   1,703  -17,409  -6,865      -4,326
    Municipal    -770    -909   -1,196    -179      -1,310
 Commodity        413     -72       43     344         211
 Total            -96  -2,437  -16,359  -5,860     -20,820
 
 (Reporting by Trevor Hunnicutt; Editing by David Gregorio)
  
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