(Adds details on withdrawals and context, paragraphs 2-7)
NEW YORK Dec 22 U.S.-based stock funds posted
$21.6 billion in withdrawals during the latest week, Lipper data
showed on Thursday, adding to a trend of outflows from actively
managed mutual funds that has lasted much of the year.
Taxable bond funds recorded $2 billion in outflows during
the latest week, the data through Dec. 21 showed, a smaller
level of withdrawals than the $5.8 billion pulled the week
Investors have pulled money from stock mutual funds despite
a strong rally since the U.S. presidential election. The stock
gains are based on a premise that President-elect Donald Trump
will enact policies that spur infrastructure spending and
inflation while cutting financial regulatory red tape.
As a result, U.S. stock prices have helped push the Dow
Jones Industrial Average within arm's reach of the 20,000
While benchmark indexes have gained ground, the Lipper data
nonetheless showed a 41st consecutive week of withdrawals from
stock mutual funds, many of which are actively run by portfolio
managers seeking to beat the market.
Many exchange-traded funds, which merely track a market
index, have been attracting money this year. But in the latest
week, as investors settle up portfolios for year-end accounting,
these funds also suffered net withdrawals.
The data this past week may overstate the degree of outflows
because of end-of-year payouts by funds that are typically then
reinvested quickly and will likely show up in future weeks as an
inflow, a Thomson Reuters Lipper analyst said.
(Reporting by Trevor Hunnicutt; Editing by Andrew Hay and Will