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Stock Funds Suffer Outflow

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March 26, 2003 — Investors’ on-again, off-again love affair with stock funds cooled last month, but their attraction to bonds remained strong.

Domestic stock funds suffered net outflows of $6.8 billion in February after taking in $1.4 billion in January, while funds that invest in U.S. bonds took in about $16 billion last month, according to Financial Research Corp. Bond funds saw net inflows of about $11.8 billion the previous month.

Funds that buy corporate bonds netted $8.2 billion in February, and funds that invest in U.S. government bonds attracted $6.1 billion, FRC said.

Pacific Management Investment Co., known as PIMCO, gathered an estimated $2.6 billion to lead all fund complexes. The company’s PIMCO Funds:Total Return Fund/A (PTTAX) was the top selling fund, gathering $843 million.

Trailing PIMCO were American Funds, with inflows of $2.3 billion, and Vanguard Group, which took in $2 billion.

Another PIMCO fund, PIMCO Funds:Low Duration Fund/A (PTLAX), was the second-best seller last month, when it took in $798 million. It was followed by Evergreen Adjustable Rate/A (ESAAX), which netted $673 million.