The Markets

September Mutual Fund Flows Increase Sharply Over August

Stock and bond funds posted net inflows of $37.9 billion in September 2007- a sharp increase from the $1.76 billion inflow posted in August, according to data from the Financial Research Corporation (FRC).
Reported by Rebecca Moore

By Morningstar category, Large Blend funds topped the list, posting net inflows of $6.5 billion for the month, followed by Intermediate-Term Bond funds with a $5.5 billion net inflow and Large Growth funds with a $5 billion net inflow.

International/Global funds led the way with net inflows of $20.5 billion, while Domestic Equity funds posted a $11.2 billion net intake, FRC data showed. Corporate funds placed a distant third with a net inflow of $4.7 billion.

Barclays Global Investors was the best selling fund group in September, winning a net $9.5 billion in new assets. State Street Global Advisors (SSgA) followed with a net inflow of $6.8 billion. American Funds ($5.1 billion), Vanguard Group ($4.2 billion), and Fidelity Distributors ($2.3 billion) rounded out the top five.

SSgA’s SPDR Trust fund topped the list of best selling funds taking in a net $5.4 billion, while the Dodge & Cox International Stock fund took in $2.6 billion in net inflows and Barclays iShares Russell 2000 Index fund post net inflows of $2.4 billion.

The FRC data can be found at www.frcnet.com.