Assets continue to pour out of long-term mutual funds, according to data from the Investment Company Institute (ICI) for the week ended March 4, which showed estimated total outflows of $21.1 billion. The majority of that ($19.8 billion) came from equity funds, which had lost almost $18 billion the previous week.
The same week was also the occasion of a slowdown in new money coming into bond funds, with only $767 million being added to taxable bonds funds and $796 million to municipal bond funds. A month earlier, taxable bonds pulled in $3.67 billion and munis $1.4 billion.
The weekly performance in early March follows what had appeared like a promising start to the year for mutual funds. According to data released by Strategic Insight, in the first two months of 2009, investors contributed a net $44 billion into open-end mutual funds. About two-thirds of that cash (around $30 billion) was put into money market funds.
Bonds also drew net inflows of about $30 billion in the first two months of the year, the research company reported.