July 1, 2002 — Cash moving into stock funds continues to slow.
In May, equity funds took in $4.83 billion in net new cash for the month, down from $12.93 billion in April, according to data released by the Investment Company Institute (ICI).
Of the total, domestic funds had inflows of $2.85 billion in May, compared with inflows of $12.26 billion in April. Stock funds that invest internationally actually saw more cash coming into their coffers with inflows of $1.98 billion in May, compared with inflows of $667 million in April.
Not surprisingly, bond funds flows were strong, taking in $10.60 billion in May, compared with inflows of $7.76 billion in April.
Hybrid funds took in $1.45 billion in May, compared with inflows of $3.29 billion in April.
The ICI added that money-market funds had outflows of $4.05 billion in May, versus outflows of $19.46 billion in April. Of that May outflow, funds that are offered primarily to institutions had inflows of $8.37 billion. Funds that are offered primarily to individuals had outflows of $12.42 billion.
The combined assets of the nation’s mutual funds decreased by $10.80 billion to $6.925 trillion in May.
Year-to-date through the end of May, stock funds are still far ahead of last year’s pace, having received net new cash flow of about $72.08 billion, versus an inflow of about $38.44 billion for the comparable period in 2001.