Fund Inflows 'Modest'

TrimTabs believes this speculative action is wrung out.
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"Modest" inflows into equity funds for the week ended Oct. 20 suggest market speculation is on the retreat, according to fund tracking firms.

AMG reported inflows of $200 million, marking a drop from the $1.1 billion funds took in during the prior week. TrimTabs says equity funds took in $1.5 billion, only a slight tick up from last week's inflow of $1.4 billion.

"Modest equity inflows have persisted despite the market's poor performance," states Carl Wittnebert, director of research at TrimTabs. "Speculative interest appears to have been wrung out, leaving only the long-term holders."

TrimTabs says equity funds that invest primarily in U.S. stocks had inflows of $1.5 billion, compared with outflows of $1.4 billion the prior week. International equity funds had outflows of $16 million, a continuation from last week's loss of $27 million.

Taxable bond funds reported net cash inflows totaling $125 million. Most went to balanced funds, $206 million, and investment grade corporate bond funds, $171 million, according to AMG.

AMG says REIT funds reported net inflows of $142 million, as $189 million of inflows into the

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exchange traded fund, or ETF, were offset by $145 million in outflows from the

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ETF. ETFs trade in a fashion not altogether unlike stocks.

AMG says money market funds reported outflows of $1.74 billion, while municipal bond funds saw inflows of $33 million for the week, a reversal of last week's outflow of $49 million.