Investment Company Institute: Funds are Pouring Money into Bonds

Inflows into bond funds hit the highest level in seven years.

The Investment Company Institute cited the largest outflows of capital from mutual funds and ETFs since September. During the first full week of 2020, fund investors pulled $13.1 billion out of the vehicles.

Investment Company Institute Data

The Investment Company Institute said that roughly $24.7 billion shifted into funds that hold taxable and municipal debt. That was the largest weekly inflow into bonds since 2013.

The outflows weren’t surprising given the performance of the S&P 500. The index finished the year up roughly 30%. A lot of investors are starting to worry that the markets are moving into the over-valued territory. The S&P 500 is already up 2% during the first two weeks of the year.

Markets did hit a new record Wednesday, despite news of the outflows. Investors have been increasingly optimistic about the U.S.-China trade deal, the de-escalation with Iran, and the uptick in stimulus efforts around the globe.

ICI said that investors are becoming increasingly positive about foreign markets. Last week, net inflows into global stock funds totaled $260 million. That figure was actually the smallest total for these foreign inflows over the last month.

The outflows are a pittance compared to the global stock and bond markets. ICI says that the global stock and bond universe now sits at $190 trillion.

Related: Alternative Investments: Breaking Down the BlackRock 2020 Forecast

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Alt Insights

January 16, 2020

ESG: Lately-turned Tesla Bull Jim Cramer Adds Fink To The Mix

ESG: Lately-turned Tesla Bull Jim Cramer Adds Fink To The Mix
Shape

Latest Alternative Investment News

Emission-Free Friday: Here are the Latest Funds to Push for Carbon Neutral
January 17, 2020     ESG and Sustainability, Investments, News

Carbon emissions dominated the headlines this week. The European Commission has announced an ambitious plan to shift toward a green economy and make the EU carbon-neutral in the year ahead….

Kirkoswald Asset Management Will Turn New Investors Away in 2020
January 17, 2020     Hedge Funds, News

Kirkoswald Asset Management will stop accepting new investors when the fund hits nearly $2 billion. Reuters reports that the two-year-old fund will close itself to new investors at the end…

FinTech: Fundbox Hires Former Goldman Sachs Investment Banker as CFO
January 17, 2020     FinTech, Venture Capital

Fundbox, the fintech startup that finances SMEs, is planning a potential IPO. Fundbox has appointed Marten Abrahamsen as its CFO effective this January. Abrahamsen was previously a partner at The…

Hedge Funds: The Empire Strikes Back At HKD Short-Sellers and Doomsayers
January 17, 2020     Hedge Funds, News

Such is the power of Kyle Bass, the hedge fund manager who correctly predicted the crisis from US subprime mortgages in 2007. The Hong Kong Monetary Authority deemed it appropriate…