Net Equity Fund Flows Remain Positive
November was the sixth month of inflows for stock funds this year – bringing the year-to-date total to about $32 billion. According to Lipper, contributions to retirement plans are a major reason that flows to stock funds have turned positive in October and November.
Diversified Funds
Diversified stock funds, with $7.7 billion in net inflows, accounted for most of the money, and of these,
· value-oriented funds attracted over $4.3 billion,
· while growth funds took in $2.7 billion
Among the diversified funds
· those investing in large caps had an outflow of
$1.1 billion,
· while those investing in mid or small caps generated
positive net sales
In November, the average diversified stock fund increased 7.62%
The rebound in investor sentiment, which appears to be continuing into December, follows net withdrawals from US stocks in the three previous stocks.
Provider Profiles
According to the Associated Press:
- Fidelity Investments reported positive flows into its stock funds, so far in December, following net sales of $2.1 billion in November. Flows into equities have come at the expense of the group’s money market and bond funds, which have both seen outflows, after positive flows the previous month
- T. Rowe Price Group Inc. has also seen positive flows into its stock funds this month, following moderate to strong equity flows in November.
- The Vanguard Group reported net sales of $1.8 billion for its stock funds in November while its bond funds drew $1.1 billion of net new money and about $450 million was made in sales in money market funds.
Fixed Income
Bond mutual funds attracted about $3 billion in November, which was only 25% of October inflow and the smallest inflow since April, according to Lipper.
Money market funds took in a net $56 billion in November, boosting the year-to-date total to $353 billion, exceeding the $130 billion recorded for all of 2000 and $194 billion in 1999.