The Dog Days Of August Are Lingering For Funds
For the mutual fund industry, the dog days of August began early and could be ending late, according to data culled from mutual fund research firms.
Depending on whom you ask, August sales data range from outflows in equity funds in the $5 billion-$6 billion range to a more optimistic report of “flat” asset totals.
Through mid-September, data indicate that sales have been scattered, with a promising first week followed by a “tough” period, according to Don Cassidy, senior research analyst with Lipper Inc., Denver.
“August was a bit discouraging. The S&P was up a half a percent, but there were $5 billion-$6 billion of outflows from equity funds,” says Cassidy. It was the first time this happened since December 1988, he adds.
Investors are being selective, as witnessed by inflows into value, balanced and real estate mutual funds, he says, while outflows are being traced in growth and technology stocks.
Bond funds–in particular, short to intermediate funds and government funds that offer quality–are showing stronger sales with inflows of more than $19 billion, Cassidy says.