Bloomberg News

U.S. Stock Fund Withdrawals Most in Six Months as Markets Fall

June 15, 2011

June 15 (Bloomberg) -- U.S. investors last week pulled the most money from domestic stock funds in six months after equities fell on concerns that the economic recovery may be faltering.

Funds that invest in U.S. stocks lost $5.46 billion in the week ended June 8, the biggest redemptions since the week ended Dec. 8, when investors withdrew $7.6 billion, according to the Washington-based Investment Company Institute. Funds that invest in international equities had $291 million in withdrawals last week, the ICI said today in an e-mail.

U.S. manufacturing grew at its slowest pace in more than a year in May, consumer spending rose less than forecast in April and the unemployment rate unexpectedly climbed to 9.1 percent last month. The Standard & Poor’s 500 Index has tumbled 7.2 percent from an almost three-year high at the end of April as investors prepare for the end of the Federal Reserve’s $600 billion bond-purchase program known as quantitative easing.

Taxable-bond funds attracted $5.09 billion last week and municipal-bond funds drew $298 million, the most since November.

--Editors: Josh Friedman, Larry Edelman

To contact the reporter on this story: Charles Stein in Boston at cstein4@bloomberg.net

To contact the editor responsible for this story: Christian Baumgaertel at cbaumgaertel@bloomberg.net


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