International Fund Flows Best Domestic Offerings

October 20, 2004 ( - Despite a squalid stock market, net inflows into stock and balanced mutual funds rose by $31 billion in the third quarter of 2004.

According to research firm Strategic Insight, this number, although not exceptionally high, still signals investment and personal confidence among individual investors in America. To date, the stock and balanced mutual fund inflow for 2004 has been $233 billion.

International equity inflows have benefited greatly in 2004, with a total of $70 billion flowing into the funds since the start of the year. In September, net inflows into international equity funds outdid flows into domestic funds.

In a press release, Strategic Insight analysts asserted that greater allocation to non-US equity funds will persist, with more investors wishing to increase their exposure to international capital markets. They attribute this to persistent pre-election uncertainty, high oil prices, and Iraq security issues. As of September, non-US dollar investments for US investors hovered under 15% of total assets, according to Strategic Insight.

Strategic Insight ( ) is a research firm for the mutual fund and wealth management industry.