Fund Flows Reach Record High in First Two Months of 07

March 19, 2007 ( - During the first two months of 2007, net flows into stock and bond mutual funds (excluding exchange-traded and variable annuity funds) neared $110 billion - the highest amount ever for the first two months of a year, according to Strategic Insight Simfund.

In a news release, Strategic Insight noted that International equity funds led mutual fund flows in early 2007, as they did in 2006. In February, international equity fund flows netted about $20 billion, below their $27 billion record in January, the news release said.

Bond fund flows in February neared $14 billion. U.S. equity and balanced fund net flows hit their highest monthly amount since 2004 at $20 billion during February.

“These record net flows early in 2007 mirror an extraordinary confidence in mutual funds, and suggest that the periodic fluctuations in stock prices worldwide, unless spiraling downward, will not reverse fund investor attitudes and choices in the near term,” Avi Nachmany, Strategic Insight’s Director of Research, said in the release.