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 The outflows from stock funds, which include both mutual funds and
exchange-traded funds, reversed the prior week's inflows of $11
billion. Funds that specialize in U.S. stocks posted $10.9 billion
in outflows, according to the report, which also cited data from
fund tracker EPFR Global.
Both the net outflows from all stock funds and the outflows from
U.S.-focused stock funds were the biggest in just two weeks. Funds
that specialize in long-term U.S. Treasuries attracted record
inflows of $3.1 billion, meanwhile, according to EPFR Global data.
The outflows came as the S&P 500 edged 0.03 percent lower over the
period after hitting record highs during the prior week. Weak U.S.
economic data on industrial output and consumer sentiment and
disappointing earnings from companies like retailer TJX Companies
weighed on stock indexes.
Emerging markets stock funds attracted $1 billion in new cash,
marking their second straight week of inflows. Analysts have said
the Federal Reserve's periodic cuts to its monthly bond-buying
program have proceeded smoothly, which has reassured emerging market
stock investors.
All bond funds attracted $5.9 billion in net inflows over the weekly
period, marking their 11th straight week of new demand. The record
inflows into funds that specialize in long-term Treasuries, which
include U.S. government bonds with a duration of six years or
longer, were the biggest since EPFR Global began tracking the funds
in 2004.
The inflows showed investors capitalizing on gains in Treasuries
prices. Benchmark 10-year U.S. Treasury note yields hit 2.47 percent
on May 15, the lowest level since Oct. 30.
All government debt funds, including funds that hold U.S. Treasuries
and other government bonds, attracted $2.6 billion in inflows, with
the iShares Barclays 7-10 Year Treasury Bond ETF and the ProShares
Ultra 7-10 Year Treasury ETF attracting much of the inflows,
according to the Bank of America report.
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Aside from big inflows into funds that hold safe-haven U.S.
Treasuries, investors committed cash to riskier bond funds.
High-yield bond funds attracted $700 million in inflows, marking
their 15th straight week of new money, while emerging market bond
funds attracted $500 million in their 8th straight week of inflows.
Analysts have said that unexpected outperformance in bonds this year
has led investors to seek bond funds. The Barclays U.S. Aggregate
bond index has risen 3.4 percent this year through Thursday.
Investors also parked $10 billion in low-risk money market funds
over the weekly period, however, reversing $4.9 billion in outflows
over the prior week.
(Reporting by Sam Forgione; Editing by Chizu Nomiyama and Meredith
Mazzilli)
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