Originally published October 13, 2012 at 8:02 PM | Page modified October 14, 2012 at 1:31 AM
Investors speed pullout from mutual funds
Stock mutual funds in the U.S. had the biggest withdrawals in more than a year as investors accelerated their flight to the perceived safety of bonds even as equities rallied.
Bloomberg News
Stock mutual funds in the U.S. had the biggest withdrawals in more than a year as investors accelerated their flight to the perceived safety of bonds even as equities rallied.
Domestic stock funds had redemptions of $10.6 billion and those buying non-U.S. equities lost $483 million to withdrawals in the week ended Oct. 3, the most since Aug. 10, 2011, according to the Washington-based Investment Company Institute. Investors added $10.9 billion to fixed-income funds in the week, the ICI said Wednesday. ICI’s weekly estimates do not include data for exchange-traded funds.
“It is possible as the quarter came to an end, some investors may have been rebalancing their portfolios,” said Geoff Bobroff, a mutual-fund consultant based in Rhode Island.
Investors have pulled money from funds that invest in domestic stocks every year since 2007, while putting money into bond funds. Investors pulled $38 billion from stock funds in the first eight months of 2012, Morningstar data show. They added $204 billion to bond funds over the same period.
The Standard & Poor’s 500 index climbed 1.2 percent in the week ended Oct. 3 and has gained 14 percent this year.










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