U.S. Bond Fund Investors Remain Resilient


U.S. fund investors pumped millions into bond funds for a 50th straight week, the Investment Company Institute (ICI) said on Wednesday, showing that caution in recent weeks may not portend a trip from debt generally.

Taxable-bond mutual funds and exchange-traded funds (ETFs) took in $839 million throughout the turbulent week ended Nov. 15, the lowest in nearly a year, as high-yield debt came under stress, according to the trade group.

But the capital still have not posted per week of outflows in nearly a year that has seen them pull in nearly $270 billion, according to Thomson Reuters’ Lipper study unit.

This year, as markets have been transfixed by stocks and other risk assets scaling record peaks, bonds are the clear winner among U.S. funds, taking in over $2 for every $1 gathered with their equity counterparts, according to data from Lipper.

“We don’t believe that is actually the end of the bull market. We Just think we are later in the cycle so it’s a time to begin becoming a bit more cautious.”

U.S. fund investors walloped high-yield funds with their fourth-largest weekly withdrawals on document throughout the week ended Nov.. 15, according to Lipper, as investor sentiment dropped following setbacks to many company mergers and in U.S. tax reform efforts.

The funds have brought some of the money back in the days since.

Total, bond funds earned $1.5 billion during this week, aided by a 19th straight week of leaks into municipal capital, ICI said. Stock funds posted $54 million in outflows, with $4.2 billion in domestic inventory outflows nearly offset by a 50th consecutive week of Inflows for funds concentrated overseas.