=DJ Stock Funds Saw $18.7B June Inflow, Bonds Take In $5.3B
07/30/2003
Dow Jones News Services
(Copyright © 2003 Dow Jones & Company, Inc.)
By John Shipman
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--Stock mutual funds had a net inflow of $18.66 billion in June, the third straight month of positive flows for those funds, according to an industry report issued Wednesday.
The Investment Company Institute, the fund industry's main trade organization, said in its monthly report that bond funds had inflows totaling $5.3 billion, compared with $8.9 billion in May. Stock-fund inflows in May were $11.9 billion.
June's positive inflow for stock funds, along with market appreciation, helped boost total stock fund-assets above $3 trillion for the first time since June of last year.
Stock-fund assets stood at $3.03 trillion at the end of last month, compared with $2.96 trillion in May and $2.67 trillion at the end of 2002. Equity-fund assets had climbed as high as $4.4 trillion in March 2000, and bottomed out at $2.51 trillion last September.
Exchanges into stock funds, presumably from bond and money-market funds, added up to about $2.65 billion.
Meanwhile, exchanges out of bond funds registered at $2.5 billion - an amount not seen since the peak of the bull market in March 2000, and perhaps an indication that investors are betting the stock market will be offering better returns than bonds in the foreseeable future.
New sales of stock funds climbed to $76.7 billion, a 16% increase over sales in May, while redemptions rose about 7% in June.
Hybrid funds, which invest in both stocks and bonds, had an inflow of about $4 billion, compared with May's $3 billion inflow.
Cash levels in June increased slightly in stock funds, to about $142.5 billion from about $142 billion in May.
Money funds had a positive flow of $23.2 billion in June, thanks to more than $31 billion flowing into funds held primarily by institutional investors.
(MORE) Dow Jones Newswires
07-30-03 1355ET
=DJ Stock Funds -2: Strong Inflows Continue In July
For one of the nation's largest fund firms, Vanguard Group, strong equity inflows have continued in July.
Vanguard's stock funds have taken in about $2.8 billion in new cash this month, according to spokesman John Demming, while the firm's bond funds have experienced outflows of $1.9 billion.
In June, Demming said Vanguard's stock funds gathered in about $2.6 billion, and its bond funds took in $450 million.
The firm's money funds this month have had an inflow of $1.1 billion, while June featured an outflow of $1.3 billion, Demming said.
Spokeswoman Robyn Brenza at T. Rowe Price said the Baltimore firm was still seeing strong equity inflows, though not ahead of June's pace.
T. Rowe's taxable bond funds are garnering modest inflows, Brenza said, with high-yield still attracting the most investors.
Municipal bond funds and money funds are experiencing modest outflows, she added.
-By John Shipman, Dow Jones Newswires; 201-938-5171; john.shipman@dowjones.com
(END) Dow Jones Newswires
07-30-03 1438ET
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