The steady, if unspectacular, stream of cash flowing into equity funds continued for the week ended Oct. 27.
AMG reports inflows of $1.1 billion, which is an increase from the $200 million funds took in the prior week. TrimTabs says equity funds took in $780 million, slightly more than half of last week's intake of $1.5 billion.
Analysts say inflows in the $1 billion range points to a lack of speculation in the market because the majority of these flows are the result of automatic purchases in employee retirement accounts. A $1 billion move might seem dramatic, but it is not considered to be out of the ordinary in the $7.5 trillion mutual fund market.
"Technology outflows month-to-date are the highest since June," states Carl Wittnebert, director of research at TrimTabs, in his explanation for the relatively slim flows.
TrimTabs says equity funds that invest primarily in U.S. stocks had inflows of $575 million, compared with inflows of $1.5 billion the prior week. International equity funds had inflows of $210 million, a reversal from last week's loss of $16 million.
Taxable bond funds reported net cash inflows totaling $359 million with most going to international and global debt funds, $204 million, and investment grade corporate bond funds, $179 million, according to AMG.
Utility funds reported their fourth consecutive week of inflows, adding $41 million. The gain marked the funds' first four-week advance since June 1983, says AMG.
AMG says money market funds reported inflows of $1.55 billion. Municipal bond funds reported net cash outflows of $312 million, while riskier high-yield municipal bond funds saw inflows totaling $80 million for the week.