For more stories like this, sign up for the PLANSPONSOR NEWSDash daily newsletter.
Stock Funds Pick Up the Pace In May
Cash flow into domestic equity funds was stock funds was $19.76 billion in May, compared with cash flow of $17.37 billion in April.
However, world equity funds had an outflow of $2.47 billion in May, compared with an inflow of $1.85 billion in April. On a net basis, equity funds rose by $28.39 billion in May, lifted by net new cash flow of $17.29 billion. In April $19.21 billion had flowed to equity funds. Overall, equity funds totaled $3.744 trillion at month’s end, an increase of 0.8% from April’s report.
Fund Flows
The combined assets of the nation?s mutual funds increased by 1.2% to $7.028 trillion in May, according to the Investment Company Institute?s official survey of the mutual fund industry.
Money market mutual funds increased by an even more impressive $39.88 billion to $2.071 trillion in May. Money market funds offered primarily to institutions reported an inflow of $46.0 billion during the month.
Taxable bond funds drew an additional $5.0 billion in net cash flows, while the category increased 1.6% overall to $1.824 billion. Municipal bond funds managed to pick up a net $1.112 billion in cash flows, but the category only increased 1.3% to $284.4 billion.
Hybrid funds finished the month at $353.2 billion, up 1.5% from a month earlier. Hybrids, which are comprised of both stock and bond holdings, benefited from $1.435 billion in net inflows during the month.