Net New Cash Into Stock Funds Rose in July

ICI reports dramatic inflow surge for U.S. stock funds

Cash flow into the nation's stock mutual funds rose in the month of July, according to data released today by the Investment Company Institute (ICI). Equity portfolios took in $10.08 billion in July, versus an inflow of $6.16 billion in June.

The ICI said among stock funds, world equity funds (funds that invest primarily overseas) posted an inflow of $4.68 billion in July, versus an inflow of $4.46 billion in June. Funds that invest primarily in the U.S. had an inflow of $5.40 billion in July, compared with an inflow of $1.70 billion in June.

Year-to-date through the end of July, stock funds have received about $83.58 billion in net new cash, well below the $127.51 billion figure recorded in the year-ago period.

Long-term funds -- stock, bond, and hybrid funds -- collectively had a net inflow of of $18.91 billion in July, compared with net inflow of $12.27 billion in June.

Bond funds had an inflow of $7.37 billion in July, compared with an inflow of $4.13 billion in June. Taxable bond funds had an inflow of $5.67 billion in July, compared with an inflow of $2.91 billion in June. Municipal bond funds had an inflow of $1.70 billion in July, compared with an inflow of $1.15 billion in June.

Money-market funds had an inflow of $22.74 billion in July, compared with an inflow of $3.04 billion in June. Funds offered primarily to institutions had an inflow of $13.14 billion. Funds offered primarily to individuals had an inflow of $9.60 billion.

Overall, the combined assets of the nation's mutual funds increased by $240.0 billion, or 2.9%, to about $8.46 trillion in July.

NET NEW CASH FLOW OF LONG-TERM FUNDS (BIL.$)

July 2005

June 2005*

YTD 2005

YTD 2004*

Stock Mutual Funds

10.08

6.16

83.58

127.51

Taxable Bond Mutual Funds

5.67

2.91

17.77

-11.49

Municipal Bond Mutual Funds

1.70

1.15

4.23

-12.46

Hybrid Mutual Funds

1.46

2.05

21.74

27.53

Contact Bob Keane with questions or comments at: bkeane@investmentadvisor.com.
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