October 31, 2018 / 6:46 PM / in 20 days

U.S. investors take most cash in 8 months from taxable bond funds -ICI

    Oct 31 (Reuters) - U.S. fund investors took nearly $6.9
billion from taxable bond funds during the latest week,
withdrawing from debt markets at the fastest pace since
February, Investment Company Institute (ICI) data showed on
Wednesday.
    Investors' sharp turn against debt comes after nearly three
years of strong demand that added hundreds of billions of
dollars to such products. Returns on many bond funds have been
negative this year as the U.S. Federal Reserve raised interest
rates to head off inflation. Higher rates and inflation hurt
bond prices.
    The withdrawals, from mutual funds and exchange-traded funds
(ETFs), took place during the seven days through Oct. 24,
according to the ICI's most recent data.
    Investors turned positive on stocks during the week, the
trade group's data showed. More than $3 billion rushed into
stocks, the first positive net number for equity funds in five
weeks.
    That result seemed to reflect speculators' buying the dip as
grim trading during the week erased the Dow Jones Industrial
Average's and the S&P 500's gains for the year.
    In another reversal from the prior three weeks, fund
investors' interest in domestic stocks was stronger than for
those outside the United States.
    The following table shows estimated ICI flows for mutual
funds and ETFs (all figures in millions of dollars):
               10/24   10/17    10/10    10/3    9/26/2018
 Equity        3,129   -12,822  -2,542   -4,282  -1,182
    Domestic   4,091   -14,426  -3,044   -4,806  930
    World      -962    1,605    502      524     -2,112
 Hybrid        -2,215  -2,574   -1,812   -2,099  -1,768
 Bond          -7,051  -5,637   -7,137   6,494   1,717
    Taxable    -6,874  -4,327   -5,484   6,497   2,091
    Municipal  -178    -1,310   -1,653   -3      -374
 Commodity     344     211      138      -188    253
 Total         -5,794  -20,821  -11,353  -74     -981
 
 (Reporting by Trevor Hunnicutt; Editing by Steve Orlofsky)
  
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