U.S. fund investors showed flashes of optimism during the latest week, feeding the most cash into the stock market in more than two months, according to Investment Company Institute (ICI) data on Wednesday. Equity mutual funds and exchange-traded funds (ETFs) based in the United States netted $3 billion during the week ended Aug 22, the most cash in any week since June, the trade group said. Demand for stock funds nosedived in recent weeks as strong corporate earnings were overshadowed by the possibility of a trade war. During the period measured by ICI, one former affiliate of U.S. President Donald Trump was found guilty of tax and bank fraud charges and another pleaded guilty to a range of charges and said he acted at the direction of Trump. Each case threatened political consequences that could agitate markets. Nonetheless, the S&P 500 marked its longest bull-market run. Domestic-focused equity funds pulled in $1.4 billion, also the most since June, while funds that buy international shares took in $1.6 billion, according to the data. Investors continue to flock to debt for an ostensibly safer source of returns. U.S.-based bond funds collected $4.6 billion in the most recent seven days, marking a 27th straight week netting cash, ICI said. Commodities funds faced $532 million in withdrawals. The dollar's more than 4 percent gain over the past six months against its major trading partners have hurt demand for gold, which is priced in the greenback. The following table shows estimated ICI flows for mutual funds and ETFs (all figures in millions of dollars): 8/22 8/15 8/8 8/1 7/25/2018 Equity 3,021 779 -1,667 -3,011 419 Domestic 1,408 12 -3,408 -2,130 524 World 1,613 767 1,741 -881 -105 Hybrid -1,487 -1,479 -1,447 -2,268 -1,165 Bond 4,598 1,675 6,857 5,844 4,417 Taxable 4,067 1,013 6,135 5,681 3,817 Municipal 531 662 723 163 600 Commodity -532 -674 -450 -101 164 Total 5,600 301 3,292 463 3,835 (Reporting by Trevor Hunnicutt)
