Stock Funds Take in $21.4 Billion in July: ICI

Aug. 28, 2003 — Equity funds continued to enjoy inflows in July as stock funds took in a net $21.4 billion, versus $18.6 billion in June, according to data from the Investment Company Institute.

Domestic equity funds had inflows of $19 billion in July, versus $18 billion in June. Stock funds that invest overseas had inflows of $2.4 billion in July, versus $591 million in June.

Bond funds had an outflow of $10.8 billion in July, compared to an inflow of $5.1 billion in June. ICI noted that “the July outflow came during a month in which interest rates rose,” and that the outflow is “consistent with historic trends during which bond funds register outflows or weakened inflows during periods of rising interest rates.”

Hybrid funds had an inflow of $3.5 billion in July, compared with an inflow of $4 billion in June.

Money-market funds had an outflow of $9.9 billion in July, compared with an inflow of $22.1 billion in June. Funds offered primarily to institutions had an outflow of $5.5 billion in July. Funds offered primarily to individuals had an outflow of $4.5 billion for the month.

Year to date through June, equity funds have received an inflow of $56.8 billion, compared with an inflow of just $579 million at this time last year.

Overall, the combined assets of the nation’s mutual funds increased increased by $52.4 billion, or 0.8%, to $6.9 trillion in July.

Net New Cash Flow of Long-Term Funds (Bil.$)

STOCK MUTUAL FUNDSAmounts in Billion $

July 2003June 2003*Year-to-Date 2003Year-to-Date 2002*

New Sales76.2474.61463.82573.32

Redemptions-59.88-59.03-406.48-543.50

Net Exchanges5.023.04-0.55-29.23

Net New Cash Flow21.3818.6356.790.58

TAXABLE BOND MUTUAL FUNDS

July 2003June 2003*Year-to-Date 2003Year-to-Date 2002*

New Sales30.0334.39231.19181.39