By Yali N’Diaye
WASHINGTON (MNI) – Data released Wednesday by the Investment
Company Institute showed redemptions continued for long-term municipal
bond funds in the week ended April 27.
Estimated flows showed, however, that outflows from muni funds
slowed compared with the previous two weeks.
While taxable bond funds took in $3.6 billion in the April week,
slightly more than $3.3 billion the previous week, investors continued
to exit municipal bond funds — which had estimated outfows of $605
million.
While this smaller than outflows recorded for each of the three
previous weeks of the month, and nowhere near the December 2010 and
January 2011 exodus, it still reflects unease with exposure to state and
local government budget woes.
So far in April, outflows from long-term muni bond funds have
totaled $3.8 billion.
Those redemptions are on the back of outflows of $2.7 billion in
March, $4.3 billion in February, $12.4 billion in January, $13.4 billion
in December 2010 and $7.7 billion in November.
The last time the ICI reported inflows for such funds was in
October of last year ($1.9 billion).
Taxable bond funds, on the other hand, have been experiencing
inflows since the beginning of the year.
Equity funds recorded outflows of $906 million in the April 27
week.
The muni market is also the subject of close scrutiny from the
Securities and Exchange Commission, including regarding the disclosure
of pension funds’ funding status.
** Market News International Washington Bureau: 202-371-2121 **
[TOPICS: MNUEQ$,M$U$$$,M$$FI$,MFU$$$]
