From the October 2010 issue of Research Magazine • Subscribe!

October 1, 2010

Fund Flows Continue into Bonds

The latest news on fund flows and fund families.

Stock and bond funds in the United States experienced net inflows of $15.4 billion in July, reports the Financial Research Corporation. This is down 34 percent from inflow levels in June and 65 percent from last July, according to FRC data.

Overall flows, including outflows from money-market funds, were $12.7 billion in July.

In terms of broad categories, the corporate bond objective led the net inflow category with $17.9 billion, followed by the tax-free bond objective with $5.2 billion. Vanguard Emerging Markets Fund attracted $2.2 billion to lead the fund sales chart.

Broken down by Morningstar category, intermediate-term bonds attracted $8.8 billion in July and $50 billion so far this year. Short-term bonds captured $4 billion in July and $34.7 billion in the first seven months of 2010.

In July, investors put $3.4 billion into high-yield bonds, $2.5 billion into multi-sector bonds, $2 billion into world bonds, $1.5 billion into emerging-market bonds, $760 million into long-term bonds, $642 billion into long-government holdings, and $590 million into high-yield municipals.

The largest five mutual fund families in July were Vanguard, American, Fidelity, BlackRock and Pimco.

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