Funds See $25B in July Flows

An SI news release said July’s net inflows were an improvement over the roughly $14 billion of net new flows seen in June and the net redemptions of $8 billion in May.

SI data showed equity funds enjoyed modest net redemptions of $5 billion in July, 0.1% of equity fund assets. U.S. domestic equity funds saw net outflows of just over $7 billion. Meanwhile, U.S.-based international/global equity funds experienced net inflows of nearly $2 billion, attracting a portion of some investors’ growth-oriented capital.

Bond funds experienced net inflows of $30 billion in July, as inflows persisted among many lower-volatility bond funds used for cash management. In general, U.S. taxable bond funds drew $25 billion in net investments and U.S. muni bond funds attracted $5 billion – in both cases drawn in part by the search for income amid near-zero yields on cash and money-market vehicles.

“Even in the face of financial-market unpredictability, risk-averse investors are using mutual funds – especially bond funds – for long-term investing,” commented Avi Nachmany, SI’s Director of Research, in the news release. “Early August has been marked by further doubts about the economic environment, which suggests that strong bond-fund demand will continue.”

More information is at www.sionline.com.