Bond Fund Flows Flourish, While Stocks Slow in February

March 27, 2002 ( - The combined assets of America's mutual funds fell to $6.92 trillion in February, from $6.97 trillion in the previous month, according to data from the Investment Company Institute (ICI).

Some $4.69 billion flowed into stock funds over the month, significantly lower than January’s inflow of $20.05 billion, and bringing year to date inflows to $21.7 billion, slightly higher than the comparable period in 2001.

An outflow of $2.89 billion in funds that invest overseas offset an increase of $7.58 billion in domestic fund inflows.

On the fixed income side, bond funds attracted some $10.7 billion in new money in February, slightly up from the $10.5 billion recorded the previous month, while money market funds shed $5.45 billion in assets in February, compared to an inflow of $14 billion the previous month.

Over the month, money funds aimed primarily at institutions had outflows to the tune of $10.12 billion, while funds marketed to individuals saw inflows of $4.67 billion.