Equity Funds Inflow Takes a Leap in August

Some equity fund offerings were comparatively hot in August as investors added a net $4.8 billion to US-based stock mutual funds, up from $738 million the month before, according to Investment Company Institute (ICI) data.

The ICI data also reflected investors’ continuing warm and fuzzy feelings for stock funds investing in foreign markets. Funds concentrating in foreign stocks had a net inflow of $8.53 billion in August, compared with an inflow of $4.82 billion in July.

On the other hand, funds investing primarily in domestic stocks had a net outflow of $3.73 billion, smaller than the $4.08 billion outflow in July.

Overall, the nation’s funds tacked on another $206.8 billion in assets in August, a 2.2% hike to $9.584 trillion. ICI said long-term funds – stock, bond, and hybrid – had a net inflow of $11.6 billion during the month, vs. an inflow of $3.85 billion in July (See July Fund Assets Tick Upward ). Hybrid funds alone posted a $202-million August inflow, compared with an outflow of $99 million the month before.

Meanwhile, in the fixed income arena, bond funds had an inflow of $6.67 billion in August, a significant hike from the July inflow of $3.21. Taxable bond offerings reported an inflow of $5.23 billion in August, vs. a $2.87-billion July influx. Municipal bond funds had an inflow of $1.44 billion in August, compared with an inflow of $344 million in July.

In the cash and stable value area, ICI said money market funds had an inflow of $42.7 billion in August, compared with a $25.8-billion July increase.

Funds offered primarily to institutions had an inflow of $35.3 billion during August. Funds offered primarily to individuals had an inflow of $7.41 billion.

The ICI data report is at http://www.ici.org/stats/mf/arctrends/trends_08_06.html