March 30, 2004 — Stock funds continued to extend monthly gains in February, taking in $26.2 billion in net new cash, less than January’s surge of $43.0 billion.

Of the total inflows into equity funds, domestic stock funds took in $18.1 billion in February, versus $31.5 billion in January. Stock funds that invest overseas experienced a net inflow of $8.1 billion in February, versus an inflow of $11.5 billion in January.

Year to date through the end of February, stock funds have been enriched by $69.2 billion, versus a net outflow of $11.2 for the comparable period in 2003.

ICI said that long-term funds — i.e., stock, bond, and hybrid funds — collectively had a net inflow of $32.7 billion in February, compared with an inflow of $48.2 billion in January.

Bond funds experienced a sharp turnaround, taking in a net $1.5 billion in February, versus an outflow of $318 million in January. Taxable bond funds had inflows of $922 million, while municipal bond funds had inflows of $538 million.

Money-market funds had an outflow of $21.0 billion in February, versus an outflow of $19.8 billion in January. Funds offered primarily to institutions had an outflow of $12.0 billion in February. Funds offered primarily to individuals had an outflow of $9.0 billion in February.

Overall, the combined assets of the nation’s mutual funds increased by $97.0 billion, or 1.3%, to $7.63 trillion in February.

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

STOCK MUTUAL FUNDS Amounts in Billion $

February 2004 January 2004* YTD 2004 YTD 2003*

New Sales 82.32 104.62 186.94 121.49

Redemptions -58.45 -69.04 -127.49 -122.40

Exchanges In 14.19 22.09 36.29 41.25

Exchanges Out -11.84 -14.70 -26.53 -51.50

Net New Cash Flow 26.23 42.98 69.21 -11.15

TAXABLE BOND MUTUAL FUNDS

February 2004 January 2004* YTD 2004 YTD 2003*

New Sales 26.54 29.68 56.22 65.66

Redemptions -24.40 -27.48 -51.87 -40.59

Exchanges In 4.10 4.78 8.88 16.94

Exchanges Out -5.31 -7.09 -12.40 -11.44

Net New Cash Flow 0.92 -0.10 0.82 30.58

MUNICIPAL BOND MUTUAL FUNDS

February 2004 January 2004* YTD 2004 YTD 2003*

New Sales 4.97 5.11 10.08 10.87

Redemptions -4.44 -5.08 -9.52 -8.88

Exchanges In 0.79 1.07 1.86 2.95

Exchanges Out -0.79 -1.31 -2.10 -3.00

Net New Cash Flow 0.54 -0.22 0.32 1.93

HYBRID MUTUAL FUNDS

February 2004 January 2004* YTD 2004 YTD 2003*

New Sales 10.10 11.93 22.02 13.35

Redemptions -5.58 -7.35 -12.92 -12.00

Exchanges In 1.52 2.22 3.74 2.52

Exchanges Out -0.99 -1.28 -2.27 -2.70

Net New Cash Flow 5.04 5.52 10.56 1.17

*Revised