ReFlow FLIX Index Shows Mutual Fund Asset Flows Dropped in July

ReFlow Management Co.’s FLIX Index, a monthly indicator of asset flow volatility for long-term mutual funds, declined to 492 in July from a 573 reading in June, continuing its retreat from the peak levels seen in May.

The July FLIX reading represented a 13.7% drop from June, which in turn represented a 13.5% drop from May. Lower gross flow volumes for both equity and taxable bond funds pushed the FLIX below its 12-month trailing average of 535.

“Still, flow volatility remained higher than levels typical before the financial crisis,” according to a ReFlow news release.

The FLIX flow barometer showed July sales outpacing redemptions by 14.7% for all long-term funds. Among taxable bond funds, monthly sales were 64% higher than redemptions, although those positive net flows were due more to declining redemptions than to robust sales. Equity fund net flows were negative, with redemptions outweighing sales by 8.5%. While equity fund redemptions were lower than in five of the last months, new fund sales dropped even more.