Dismal June Markets Dampen Mutual Fund Holdings

July 31, 2001 (PLANSPONSOR.com) - Despite a $10.63 billion net cash inflow during the month, stock mutual funds slipped by $67.95 billion in June, according to the Investment Company Institute (ICI).

That cash inflow was roughly half the $18.13 billion reported in May.

Domestic stock funds attracted just $9.55 billion in June, compared with a $20.59 billion inflow the month before. World equity funds pulled in $1.08 billion, a dramatic reversal from May’s $2.46 billion outflow.

Fund Flows

Overall the combined assets of the nation?s mutual funds decreased by 1.2% to $6.943 trillion in June.

Hybrid funds ? funds comprised of both stocks and bonds ? lost 1.2% and totaled $349.1 billion at the end of June. The drop came despite a $1.106 billion net cash inflow during the month.

Money market mutual funds decreased by $16.30 billion to $2.055 trillion in June, according to the report. Money market funds offered primarily to institutions reported an outflow of $10.22 billion in June.

Last month’s report.