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Investors Slow Stock Fund Purchases

They continue to show a preference for foreign stock funds over U.S. stock funds.
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Investors slowed their purchases of equity mutual funds over the past week, and they continued to show a preference for foreign stocks.

Investors added a net $2.64 billion into equity mutual funds over the five business days ended Wednesday, according to TrimTabs Investment Research of Santa Rosa, Calif. That was only about half of the $4.21 billion they added the previous week.

Equity funds that invest primarily in U.S. stocks attracted $568 million of new money, net of redemptions, down from $732 million the previous week.

Meanwhile, equity funds that invest primarily in non-U.S. stocks pulled in $2.07 billion, or less than two thirds of the $3.49 billion they attracted the previous week.

Conrad Gann, president and COO of TrimTabs, said this was the first week in a while that saw inflows for mutual funds and exchange-traded funds in both international and U.S. equities.

Gann said some of the mutual fund sectors that saw inflows included financial, health care, utility funds and precious metals.

Investors also slowed their purchases of bond funds, kicking in $3.24 billion, down slightly from $3.39 billion during the previous week. Hybrid funds, which invest in stocks and bonds, were on the upswing, with inflows totaling $1.39 billion, compared with inflows of $1.02 billion during the previous week.

Exchange-traded funds that invest in U.S. stocks pulled in $1.93 billion of new money, partially reversing the $4.17 billion of outflows the previous week.

ETFs that invest in non-U.S. stocks took in $233 million of new money, down from $426 million during the previous week.


Dow Jones Industrial Average

closed at 13,291.65 Wednesday, down from 13,305.47 a week earlier.