10, 2012 (PLANSPONSOR.com) – Investors put only $26.5 billion in net inflows
into stock and bond mutual funds in the U.S. in April 2012.
marked a decline from March, when investors put net $32 billion in flows into
long-term funds, according to Strategic Insight (SI), an Asset International
April, domestic equity funds saw net outflows of nearly $6 billion during a
month of lackluster demand for U.S. stocks: the benchmark S&P 500 Index
generated a total return of -0.6% in April amid trading volumes that were down
more than 8% from the trailing 12-month average. That brought total U.S. equity
fund flows to -$6 billion for the first four months of 2012—a sharp reversal
from the first four months of 2011, when U.S. equity funds enjoyed cumulative
net inflows of $41.9 billion.
and global equity funds offered some relief, drawing net inflows of $10.4
billion in April—the best month for such mutual funds since March 2011. In the
first four months of 2012, international equity funds drew aggregate net
inflows of $26.5 billion.
remain in a holding pattern, as economic growth rates declined or turned
negative in a number of key markets,” said Avi Nachmany, SI’s director of
research. “The fragile state of investor confidence will benefit bond fund
inflows in the near future as investors stayed centered on income strategies.”