U.S.-based stock fund outflows in latest week most since October 2012: ICI
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E-mailBy Sam Forgione
NEW YORK (Reuters) - Investors in U.S.-based mutual funds pulled $11 billion out of stock funds in the week ended Aug. 26, data from the Investment Company Institute (ICI) showed on Wednesday, as concerns over slowing growth in China sent stock markets tumbling.
The outflows from stock funds were the most since early October 2012, according to the data from ICI, a U.S. mutual fund trade organization. Funds that specialize in U.S. shares posted $9.8 billion in outflows, while funds that mainly hold foreign stocks recorded $1.2 billion in withdrawals.
The outflows from funds that specialize in U.S. stocks were the biggest in six weeks and continued a streak of outflows that began in late February, while the withdrawals from international-focused stock funds were the first of the year and the biggest since last December.
Investors pulled $12.1 billion from bond funds for the fifth straight week of outflows and the biggest withdrawals since early October 2014.
Alan Lancz, president of investment advisory firm Alan B. Lancz & Associates Inc in Toledo, Ohio, attributed the outflows from bond funds to investors' desire to raise cash and concerns of a possible Federal Reserve rate hike this year or in early 2016.
Hybrid funds, which can invest in stocks and fixed income securities, posted $4.3 billion in outflows, their biggest since mid-November 2011.
"China has a big influence on global growth and the turnaround since the financial crisis. With the lessening of that engine of growth and with the U.S. still fairly anemic by historical standards, it definitely concerns investors," Lancz said.
The benchmark S&P 500 sank 6.7 percent over the weekly period. Europe's FTSEurofirst 300 of top regional shares tumbled 8.3 percent over the period.
(Editing by Jennifer Ablan and Jeffrey Benkoe)
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