Investors Pull More Cash from Bond Funds
November 2, 2012
Investors pulled money out of high yield mutual funds after a brief two-week break.
High yield mutual funds including ETFs saw $618.6 million in outflows for the week ended Oct. 31, according to Lipper FMI. The four-week trailing average moved to negative $167.6 million from negative $221.7 million.
Last week saw a paltry $9.5 million in inflows and the week ended Oct. 17 had positive flows of $522.8 million. Those previous two weeks of positive flows follow three weeks of outflows, including more than $1 billion in outflows for the week ended Oct. 10. Investors took approximately $2.3 billion out of junk bond mutual funds in the three week period ended Oct. 10.
ETFs accounted for $53.3 million or 8.6% of the outflows from junk bond mutual funds. Outflows not including ETFs totaled $565.3 million for the week.
Despite the recent outflows, high yield mutual funds including ETFs have taken in approximately $49 billion this year, according to EPFR Global.
Leveraged loan mutual funds saw small inflows totaling $78.2 million for the week. It is a drop from last week’s inflows of more than $502 million, which was the highest weekly inflow for the year so far. The four-week trailing average moved to $337.7 million from $428.4 million.