Hybrid Funds Boost Flows
Long-term mutual funds had estimated inflows of $902 million in the latest week on an increase to hybrid funds that more than offset declines from the bond and equity categories, according to the Investment Company Institute.</br></br>The funds tracked by ICI have posted outflows in six of the last seven weeks, as volatility in the stock market related to the U.S. debt ceiling and concerns about stagnant domestic economic growth and the European sovereign-debt crisis has rattled investors.</br></br>For the week ended Aug. 31, equity funds had outflows of $131 million, compared with outflows of $3.2 billion in the prior week. Investors withdrew $748 million from U.S. equities but added $617 million to foreign funds.</br></br>Meanwhile, ICI reported bond funds had outflows of $76 million, compared with week-earlier outflows of $20 million. Investors pulled $303 million from taxable funds, while inflows to municipal funds totaled $227 million.</br></br>Investors also added $1.11 billion to hybrid funds after prior-week inflows of $871 million. Such funds can invest in both stocks and fixed-income assets.