International/Global Funds Return for Repeat August Performance

September 30, 2005 ( - For the second straight month, stock and bond funds had strong net inflows in August , according to Financial Research Corporation's (FRC's) report of August 2005 Estimated Mutual Fund Net Flows.

The FRC data shows a hefty $17 billion August inflow – coming on the heels of the $16 billion July inflows (See  Investors Turn to International/Global Funds in July ).

Also returning for a repeat performance were International/Global Funds which pulled in a strong $11 billion in August. That followed the $7.3 billion they generated in July, FRC reported in a news release. In the latest data, following International/Global Funds were Corporate Fixed Income funds with a $5.4 billion advance and Tax-Free Funds with a $2.2 billion inflow.

In contrast to the strong performance in the International/Global domain, Domestic Equity funds turned in a weak showing, retreating $1.2 billion in August.

Drilling down by Morningstar Category, Intermediate Term Bond led the pack with a $4.7 billion advance, followed by Moderate Allocation ($3.8 billion inflows), Conservative Allocation ($2.1 billion inflows), World Allocation ($1.92 billion inflows) and Foreign Large Blend ($1.9 billion inflows).

American Funds was still the top seller for August, taking in $6.6 billion for the month, well ahead of the $3.6 billion from The Vanguard Group, the $2.3 billion from the PIMCO Funds, the $2.1 billion from the Barclays Global Investors Funds and the $2 billion from Franklin Templeton.

American Funds Growth Fund of America was the top selling portfolio in August, with net inflows of $1.6 billion while the PIMCO Total Return Fund came in second with monthly net inflows of $1.4 billion. 

The full FRC report is here .