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Long-Term Funds Lose Billions in July
In fact, so-called long-term funds – basically anything other than money market funds – had a net outflow of $26.04 billion in July, compared with a modest inflow of $436 million in June (see Mutual Fund Assets Drop 5% in June ).
Most of that came from stock funds, which posted an outflow of $26.36 billion in July, compared with an outflow of $4.82 billion in June. Among stock funds, world equity funds (US funds that invest primarily overseas) – which have in many months continued to attract new money even when domestic funds didn’t – posted an outflow of $7.67 billion in July, well ahead of June’s outflow of $1.20 billion. Funds that invest primarily in the US had an outflow of $18.69 billion in July, also well up from the $3.63 billion outflow
Hybrid funds posted an outflow of $1.47 billion in July, compared with an inflow of $697 million in June.
Exception Move
Bond funds was the exception to the month’s trend – but the $1.79 billion July inflow was well off the $4.56 billion pace in June.
As for where all that money was flowing to, money market funds enjoyed an inflow of $79.44 billion in July, more than reversing June’s $75.89 billion outflow. Funds offered primarily to institutions had an inflow of $56.38 billion, with the remaining $23.06 billion attributable to funds offered primarily to individuals.
Taxable bond funds had an outflow of $689 million in July, vs. an inflow of $1.94 billion in June, and municipal bond funds had an inflow of $2.48 billion in July, compared with an inflow of $2.62 billion in June.
Total Net Assets of Mutual Funds
(billions of dollars)
style="TEXT-ALIGN: right"> July 08 | style="TEXT-ALIGN: right"> June 08 | style="TEXT-ALIGN: right"> % chg | style="TEXT-ALIGN: right"> Dec 07 | |
Stock Funds | style="TEXT-ALIGN: right"> 5,685.6 | style="TEXT-ALIGN: right"> 5,845.9R | style="TEXT-ALIGN: right"> -2.7 | style="TEXT-ALIGN: right"> 6,521.4R |
Hybrid Funds | style="TEXT-ALIGN: right"> 663.7 | style="TEXT-ALIGN: right"> 674.9R | style="TEXT-ALIGN: right"> -1.7 | style="TEXT-ALIGN: right"> 713.4R |
Taxable Bond Funds | style="TEXT-ALIGN: right"> 1,365.3 | style="TEXT-ALIGN: right"> 1,371.9R | style="TEXT-ALIGN: right"> -0.5 | style="TEXT-ALIGN: right"> 1,305.1R |
Municipal Bond Funds | style="TEXT-ALIGN: right"> 385.6 | style="TEXT-ALIGN: right"> 384.2R | style="TEXT-ALIGN: right"> 0.4 | style="TEXT-ALIGN: right"> 373.8R |
Taxable Money Market Funds | style="TEXT-ALIGN: right"> 2,988.5 | style="TEXT-ALIGN: right"> 2,905.7R | style="TEXT-ALIGN: right"> 2.8 | style="TEXT-ALIGN: right"> 2,642.1R |
Tax-Free Money Market Funds | style="TEXT-ALIGN: right"> 498.9 | style="TEXT-ALIGN: right"> 496.6R | style="TEXT-ALIGN: right"> 0.5 | style="TEXT-ALIGN: right"> 465.1R |
Total | style="TEXT-ALIGN: right"> 11,587.6 | style="TEXT-ALIGN: right"> 11,679.1R | style="TEXT-ALIGN: right"> -0.8 | style="TEXT-ALIGN: right"> 12,020.9R |
R=Revised data
Net New Cash Flow of Long-Term Funds
(millions of dollars)
Stock Mutual Funds
style="TEXT-ALIGN: right"> July 2008 | style="TEXT-ALIGN: right"> June 2008 | style="TEXT-ALIGN: right"> YTD 2008 | style="TEXT-ALIGN: right"> YTD 2007 | |
New Sales | style="TEXT-ALIGN: right"> 108,029 | style="TEXT-ALIGN: right"> 109,478R | style="TEXT-ALIGN: right"> 846,034 | style="TEXT-ALIGN: right"> 898,199 |
Redemptions | style="TEXT-ALIGN: right"> -126,394 | style="TEXT-ALIGN: right"> -111,938R | style="TEXT-ALIGN: right"> -854,270 | style="TEXT-ALIGN: right"> -778,834 |
Exchanges In | style="TEXT-ALIGN: right"> 16,620 | style="TEXT-ALIGN: right"> 13,712R | style="TEXT-ALIGN: right"> 111,239 | style="TEXT-ALIGN: right"> 136,874 |
Exchanges Out | style="TEXT-ALIGN: right"> -24,618 | style="TEXT-ALIGN: right"> -16,074R | style="TEXT-ALIGN: right"> -150,307 | style="TEXT-ALIGN: right"> -159,059 |
Net New Cash Flow | style="TEXT-ALIGN: right"> -26,362 | style="TEXT-ALIGN: right"> -4,822R | style="TEXT-ALIGN: right"> -47,304 | style="TEXT-ALIGN: right"> 97,180 |
Hybrid Mutual Funds
New Sales | style="TEXT-ALIGN: right"> 14,389 | style="TEXT-ALIGN: right"> 12,900R | style="TEXT-ALIGN: right"> 99,520 | style="TEXT-ALIGN: right"> 94,629R |
Redemptions | style="TEXT-ALIGN: right"> -14,713 | style="TEXT-ALIGN: right"> -11,843R | style="TEXT-ALIGN: right"> -89,272 | style="TEXT-ALIGN: right"> -78,055R |
Exchanges In | style="TEXT-ALIGN: right"> 2,047 | style="TEXT-ALIGN: right"> 1,229 | style="TEXT-ALIGN: right"> 12,255 | style="TEXT-ALIGN: right"> 12,006R |
Exchanges Out | style="TEXT-ALIGN: right"> -3,189 | style="TEXT-ALIGN: right"> -1,589 | style="TEXT-ALIGN: right"> -15,941 | style="TEXT-ALIGN: right"> -11,324R |
Net New Cash Flow | style="TEXT-ALIGN: right"> -1,467 | style="TEXT-ALIGN: right"> 697R | style="TEXT-ALIGN: right"> 6,562 | style="TEXT-ALIGN: right"> 17,256R |
Taxable Bond Mutual Funds
New Sales | style="TEXT-ALIGN: right"> 35,122 | style="TEXT-ALIGN: right"> 36,812R | style="TEXT-ALIGN: right"> 298,473 | style="TEXT-ALIGN: right"> 248,721 |
Redemptions | style="TEXT-ALIGN: right"> -38,258 | style="TEXT-ALIGN: right"> -35,200R | style="TEXT-ALIGN: right"> -249,927 | style="TEXT-ALIGN: right"> -179,695 |
Exchanges In | style="TEXT-ALIGN: right"> 7,263 | style="TEXT-ALIGN: right"> 4,790R | style="TEXT-ALIGN: right"> 51,095 | style="TEXT-ALIGN: right"> 40,698 |
Exchanges Out | style="TEXT-ALIGN: right"> -4,817 | style="TEXT-ALIGN: right"> -4,460R | style="TEXT-ALIGN: right"> -33,569 | style="TEXT-ALIGN: right"> -32,751 |
Net New Cash Flow | style="TEXT-ALIGN: right"> -689 | style="TEXT-ALIGN: right"> 1,942R | style="TEXT-ALIGN: right"> 66,074 | style="TEXT-ALIGN: right"> 76,973 |
Municipal Bond Mutual Funds
New Sales | style="TEXT-ALIGN: right"> 8,737 | style="TEXT-ALIGN: right"> 9,039 | style="TEXT-ALIGN: right"> 60,542 | style="TEXT-ALIGN: right"> 52,199 |
Redemptions | style="TEXT-ALIGN: right"> -6,710 | style="TEXT-ALIGN: right"> -6,692R | style="TEXT-ALIGN: right"> -44,363 | style="TEXT-ALIGN: right"> -38,286 |
Exchanges In | style="TEXT-ALIGN: right"> 1,461 | style="TEXT-ALIGN: right"> 1,282 | style="TEXT-ALIGN: right"> 12,646 | style="TEXT-ALIGN: right"> 7,728 |
Exchanges Out | style="TEXT-ALIGN: right"> -1,007 | style="TEXT-ALIGN: right"> -1,009 | style="TEXT-ALIGN: right"> -8,973 | style="TEXT-ALIGN: right"> -7,237 |
Net New Cash Flow | style="TEXT-ALIGN: right"> 2,481 | style="TEXT-ALIGN: right"> 2,619R | style="TEXT-ALIGN: right"> 19,852 | style="TEXT-ALIGN: right"> 14,405 |
Net New Cash Flow of Money Market Funds
(millions of dollars)
style="TEXT-ALIGN: right"> July 08 | style="TEXT-ALIGN: right"> June 08 | style="TEXT-ALIGN: right"> YTD 2008 | style="TEXT-ALIGN: right"> YTD 2007 |
style="TEXT-ALIGN: right"> 79,443 | style="TEXT-ALIGN: right"> -75,889R | style="TEXT-ALIGN: right"> 314,808 | style="TEXT-ALIGN: right"> 199,897 |
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