Equity Fund Flows Strong in First Quarter

March 21, 2005 (PLANSPONSOR.com) - The first quarter of 2005 saw a large inflow into equity mutual funds, according to Strategic Insight's Simfund Database.

According to a press release from Strategic Insight, $85 billion flowed into stock and balanced funds in the first three months of 2005, despite a queasy stock market. This follows a $300 billion inflow in all of 2004.

One significant aspect of the inflow was the share of it that was put into international equity funds, according to the company. This share now stands at about 50% to total demand for all equity funds in the quarter, up from 33% last year and 20% in 2003, signaling an increased willingness to diversify across national borders.

February was an especially spirited month for inflows, according to the release, with $37 billion entering equity and balanced mutual funds. Bond funds had moderate growth on the month, bringing in $15 billion. Almost a third of this total entered Global Bond funds, according to the company.

Strategic Insight ( www.sionline.com ) is research firm for the mutual fund and wealth management industries.