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Every month we provide a snapshot of fund
industry results and developments, using
the latest available data from Strategic
Insight, which is released roughly three
weeks after each month-end
Clients can select from the latest Highlights
below or from the list
of all Monthly Highlights.
All reports are in PDF format [download
Acrobat Reader]
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Highlights of August 2008 Mutual Fund Industry Results |
9/19/2008 |
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Although the global financial markets have been in crisis more recently, August’s mutual fund flow results reflected sustained overall confidence. Investors deposited a net $43 billion into mutual funds over the month. Money-market funds gathered $33 billion in new money, while bond funds brought in nearly $10 billion. Equity funds returned to positive net flow territory in August, although just barely. Even though quite small, the month’s equity fund flows were a marked improvement over July’s net outflows. Asset-allocation funds-of-funds drew about $4 billion in new cash flows in August—eighty percent of that amount was captured by lifecycle (primarily target-date) programs.
Year-to-date through August, the positive aggregate net inflows equity funds experienced, albeit modest at $8 billion, are reassuring given the 12.64% drop in the S&P 500 Index over the period.
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Highlights of July 2008 Mutual Fund Industry Results |
8/18/2008 |
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Continuing stock market volatility, on the heels of an 8% decline in the S&P 500 index in June, and rising economic anxiety, led US investors to net redeem an estimated $20 billion from stock funds in July. US equity programs net redeemed $15 billion, while international equity funds saw $5 billion flow out on a net basis during July. So far in 2008, NAV losses for international equity funds have exceeded declines among US equity funds, and August’s US Dollar rebound has contributed to this reversal of performance trends in place since 2003. If the rebound in US stock markets experienced in the first half of August persists, a slow improvement in flows for equity funds may be triggered in the coming months.
Bond funds achieved a net flow volume of $6.7 billion in July, practically half of which came within inflation-indexed bond funds. Money market funds collected net inflows of $75 billion over the month, as both institutional and individual investors sought safe havens from market volatility (some of these inflows were also re-allocations of cash transferred out of MMFs at the end of the second-quarter.)
ETFs pulled in roughly $14 billion in July across all asset classes and legal structures (up from June’s $11.6 billion). Asset-allocation funds-of-funds drew close to $3 billion in new cash flows—three-quarters of that amount was captured within lifecycle programs. |
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Highlights of June 2008 Mutual Fund Industry Results |
7/24/2008 |
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Despite rising worries about the US economy, the financial sector, and inflation, long-term mutual funds experienced aggregate positive inflows in June—investors deposited more than $10 billion into stock and bond funds over the month.
Equity funds garnered an estimated $4.2 billion on a net basis in June, despite the 8.4% decline in the S&P 500 Index over the month, as investors sustained the long-term, buy-and-hold strategies that have provided a stable foundation to the mutual fund industry.
Bond fund net flows approached $6 billion in June. Given inflationary concerns and the relatively flat performance of the Lehman Aggregate Bond Index over the month, these flows were indicative of investors’ commitment to fixed-income allocations within diversified portfolios. Money market funds experienced net redemptions of $75 billion in June, but cash has been flowing back into them in the first half of July.
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Highlights of May 2008 Mutual Fund Industry Results |
6/23/2008 |
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In May, investors deposited a total of more than $75 billion into US mutual funds: stock, bond, and money-market funds all experienced aggregate positive inflows. Including projected June flows, mutual funds in the US are on pace to attract over $350 billion in cash flows during the first half.
Equity fund net inflows totaled an estimated $17 billion in May. Investors continued to seek international diversification for their portfolios—about three-quarters of May’s equity fund flows went into programs investing internationally or globally. Bond funds captured an estimated $16 billion in net flows during the month, including nearly $6 billion in municipal bond funds. Money market funds added about $42 billion, reversing the seasonal outflow they experienced in April.
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Highlights of April 2008 Mutual Fund Industry Results |
5/23/2008 |
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Against a backdrop of lingering economic anxiety, April experienced positive inflows into both stock and bond mutual funds, and seasonal withdrawals out of money market funds.
Equity fund net inflows reached an estimated $24 billion in April. Investors continued to pursue international diversification for their portfolios—about half of the month’s equity fund flows went into programs that invest internationally or globally. Stock market gains, including a nearly 5% rise in the S&P 500 Index over the course of April, resulted in an improvement in flows into domestic equity funds as well.
Bond funds captured nearly $18 billion over the month, on the heels of the $44 billion they garnered during the first quarter.
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