US MFs pull out of bonds ahead of 15 April tax deadline
09 Apr 2015
Investors in US-based mutual funds pulled $1.3 billion out of bond funds in the week ended 1 April as tax deadlines approached for retail investors, data from the Investment Company Institute showed on Wednesday.
The outflows were the first in 12 weeks, or since early January, according to the data from the US mutual fund trade organisation. The withdrawals came ahead of the 15 April tax filing deadline.
Stock funds posted $1.6 billion in total outflows in a second straight week of withdrawals and their biggest since early January. Funds that specialise in US stocks posted $3.3 billion in outflows, for a fifth straight week of withdrawals, though they were less than the prior week's $4.5 billion in withdrawals.
Withdrawals from US-focused stock funds again accounted for the total outflows from stock funds.
Funds that specialise in international shares attracted $1.8 billion in a 13th straight week of inflows. The inflows were the lowest in six weeks.
The benchmark S&P 500 stock index fell 0.1 per cent over the period while the Barclays U.S. Treasury Index gained 0.3 per cent.
Hybrid funds, which can invest in stocks and fixed income securities, attracted $720 million for a 12th straight week of inflows.
