The Markets April 30, 2009

Flight from Equity Funds Continued in March

Stock, bond, and hybrid mutual funds saw a $10.5 billion March outflow after being down $12.1 billion the month before, according to the Investment Company Institute (ICI).
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ICI data showed fund asset levels overall were $9.2 trillion, up 2.3% in March, according to a news release. Overall fund levels dropped 4% to $9 trillion in February (see “Mutual Fund Flows Backtrack in February’).

The announcement said stock funds saw a $27.5-billion March outflow, compared to an asset loss of $24.8 billion the month before. Among stock offerings, world equity funds posted an outflow of $11.1 billion in March, versus a $10.7 billion asset drain in February. Funds that invest primarily in the U.S. had an outflow of $16.4 billion in March, versus a $14.1 billion for the earlier month.

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Meanwhile, according to ICI, hybrid funds posted a $4-billion March outflow, compared to an outflow of $4.23 billion the month before.

ICI said bond funds had enjoyed an inflow of $21 billion in March, compared to a $16.9-billion inflow in February. Taxable bond funds had an inflow of $17.6 billion in March, versus an inflow of $12.6 billion in February while municipal bond funds had a March influx of $3.3 billion in March, compared to a boost of $4.3 billion the month before.

Money market funds had an outflow of $77 billion in March, compared to a $6.3 billion February outflow.

More information is available here.

Products April 30, 2009

Principal Releases New Enrollment Workbook

Principal Financial Group said its has updated its enrollment workbook.
Reported by

According to a news release, the new workbook uses a three-step process that begins with deciding how much to save, followed by choosing an investment style described as “do-it-for-me” or “do-it-myself.” The final step is filling out an enrollment form.

Additionally, The Principal customizes the enrollment workbook to include retirement plan features selected by the plan sponsor, which may include:

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  • automatic enrollment
  • employer match
  • My Principal Edge Milestones
  • catch-up contributions
  • online enrollment.

“Our research showed us that this simple three-step style resonated with employees, improving their experience and prompting them to take action,” said Barrie Christman, vice president of Individual Investor Services for The Principal, in the news release. “We want to make it as easy as possible for employees to start saving and stay invested in order to help secure their financial futures.”

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