International Offerings Pull Monies Back to Mutual Funds

October 30, 2007 (PLANSPONSOR.com) - Like a tide coming back in, equity mutual fund flows were positive in September - but only thanks to international offerings.

Stock funds posted an inflow of $7.50 billion in September, reversing about half the $15.53 billion outflow reported in August (see  Mutual Fund Assets Rebound in August ), according to the Investment Company Institute, or ICI.     World equity funds (U.S. funds that invest primarily overseas) were responsible for the inflows – registering an inflow of $11.60 billion in September, well ahead of the inflow of $1.88 billion in August.   Funds that invest primarily in the  U.S. once again suffered an outflow – though the September loss of $4.11 billion was much better than the outflow of $17.41 billion in August.

Combined Assets Increase

The combined assets of the nation’s mutual funds increased by 3.5% – $406.20 billion – in September, to $11.906 trillion, according to the ICI, a mutual fund industry trade group.    Long-term funds – stock, bond, and hybrid funds – had a net inflow of $16.02 billion in September, compared with an outflow of $19.46 billion in August.  

Hybrid funds posted an inflow of $1.10 billion in September, compared with an inflow of $60 million in August, while bond funds had an inflow of $7.43 billion in September, compared with an outflow of $3.99 billion in August.

Taxable bond funds had an inflow of $5.92 billion in September, vs. an outflow of $2.81 billion in August. Municipal bond funds had an inflow of $1.51 billion in September, compared with an outflow of $1.18 billion in August.

Money market funds had an inflow of $58.25 billion in September, compared with an inflow of $153.86 billion in August. Funds offered primarily to institutions had an inflow of $59.35 billion. Funds offered primarily to individuals had an outflow of $1.10 billion.

More information is  HERE .

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