26 Oct 2012, by
A rough start to earnings season turned away equity fund investors this past week. Following the previous week’s first positive fund flows in nine weeks, equity fund investors pulled the plug on more additions and instead withdrew $200 million from their accounts for the week ended October 24, 2012. Domestic equity funds bore the brunt of the outflows with $806 million withdrawn, while nondomestic equity funds took in $605 million. Taxable bond funds had one of their better weeks this year, seizing about $3.6 billion. Investors continued to downshift their purchases of junk bond funds; the High Yield group posted inflows of just $86 million, while core-investment choice Corporate Investment-Grade Funds saw inflows of $1.3 billion and weak-dollar play International & Global Debt funds had inflows of about $370 million. Tax-exempt funds had inflows of about $576 million, while money market funds saw outflows of about $3.2 billion.