March 22, 2017 / 3:42 PM / 8 months ago

U.S. stock funds saw strong inflows ahead of selloff -ICI

    By Trevor Hunnicutt
    NEW YORK, March 22 (Reuters) - Investors piled into
U.S.-based domestic stock funds at the fastest pace in a month
before Wall Street's biggest one-day fall since the November
U.S. presidential election, Investment Company Institute data
showed on Wednesday.
    U.S.-based stock funds attracted nearly $11 billion during
the week through March 15, and about $9 billion of that cash
went to funds that buy domestic shares, the trade group's data
    It was the funds' seventh straight week of inflows and came
in the days before Wall Street's selloff on Tuesday, when the
S&P 500 and Dow Jones Industrial Average indexes
sank by more than 1 percent.
    Markets, which have been peppy since President Donald
Trump's election victory, have grown more cautious ahead of a
test in the House of Representatives of a bill he supports to
dismantle Obamacare.
    The success or failure of that effort could signal the
likelihood that tax and regulation cuts touted by Trump and
anticipated by markets will gain support.
    "Investors have been bullish this year, due in part to the
improving U.S. economy, and continued to be so even as the
Federal Reserve raised rates last week," said Todd Rosenbluth,
director of ETF and mutual fund research at CFRA.
    "As the market has sold off in recent days, we think going
forward investors will further seek out the relative safety of
bond products."
    Bond funds attracted $2.8 billion during the week, their
12th straight week of inflows, even as the Fed hiked rates on
March 15 for the second time in three months.
    Rate-sensitive municipal bonds posted $203 million in their
first week of withdrawals since January.
    The following table shows estimated ICI flows, including
mutual funds and exchange-traded funds (all figures in millions
of dollars): 
               3/15     3/8     3/1    2/22  2/15/2017
 Equity      10,992   9,118   9,116   6,949     13,314
 -Domestic    9,014   4,290   5,766   3,455      8,059
 -World       1,978   4,828   3,350   3,495      5,255
 Hybrid        -242    -376    -912     -26        -52
 Bond         2,837   6,921   9,707   6,787      8,590
 -Taxable     3,040   6,868   9,432   6,573      7,973
 -Municipal    -203      53     274     214        616
 Commodity      237    -663     192      35        327
 Total       13,825  15,000  18,103  13,745     22,178
 (Reporting by Trevor Hunnicutt; Editing by Nick Zieminski)

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