Dec. 26, 2002 — Stock funds reversed course by receiving a net new cash inflow of about $6.46-billion for the month of November versus an outflow of $7.50-billion for the prior month, according to data released by the Investment Company Institute.

Year-to-date through the end of November, however, equity portfolios have suffered a net outflow of $19.87-billion.

John Collins, an ICI spokesman, indicated that equity funds had endured five consecutive months of net outflows; in fact, from June through October 2002, stock portfolios lost about $97-billion in cash.

Specifically, domestic stock funds had an inflow of $6.20- billion in November, compared with an outflow of $7.38- billion in October. Stock funds that invest overseas had an inflow of $268-million in November, compared with an outflow of $128-million in October.

ICI also noted that the last full year during which stock funds showed net outflows was 1988.

Net new money continued to flow into bond funds in November to the tune of $7.74 billion, versus an inflow of $6.44 billion in October

Year-to-date through the end of November, bond funds — both taxable and tax-free — have received $133.48-billion in net new cash, far ahead of last year’s figure of $89.74-billion.

Money market funds had an inflow of $127.56-billion in November, compared with an inflow of $12.47-billion in October. Funds offered primarily to institutions had an inflow of $134.82 billion in November. Funds offered primarily to individuals had an outflow of $7.27 billion.

Overall, the combined assets of the nation’s mutual funds increased by $317.90-billion to $6.555-trillion in November.

Net New Cash Flow of Lng-Trm Fnds (Bil.$) STCK MTL FNDSAmts in Bil$ Nov 02October 02*YTD 02YTD 01*

  • New Sales66.2974.87837.84870.62
  • Redemptions-60.85-77.23-814.36-813.23
  • Net Exchanges1.03-5.15-43.35-28.26
  • Net New Cash Flow6.46-7.50-19.8729.13

TAXABLE BOND MUTUAL FUNDS November 2002October 2002*YTD 2002YTD 2001*

  • New Sales26.7132.25300.98220.43
  • Redemptions-18.82-25.88-205.57-157.03
  • Net Exchanges01.6122.2913.83
  • Net New Cash Flow7.907.98117.7177.23

MUNICIPAL BOND MUTUAL FUNDS November 2002October 2002*YTD 2002YTD 2001*

  • New Sales4.505.8761.7351.65
  • Redemptions-4.34-6.44-47.36-40.54
  • Net Exchanges-0.330.961.411.41
  • Net New Cash Flow-0.16-1.5415.7712.51

HYBRID MUTUAL FUNDS November 2002October 2002*YTD 2002YTD 2001*

  • New Sales5.755.8772.3663.79
  • Redemptions-4.75-6.42-63.31-55.57
  • Net Exchanges0.21-0.47-0.580.27
  • Net New Cash Flow-1.21-1.028.468.48