Charles,
Just called my broker to ask that same question, she said to try Bloomberg so... here you go-
BBN 3/19 Investors Pull Assets From Technology-Related Funds (Update1)
Investors Pull Assets From Technology-Related Funds (Update1)
(Adding information about the number of aggressive growth
funds marketed by Charles Schwab in 2nd paragraph and comment
from T. Rowe Price in 3rd paragraph.)
Boston, March 19 (Bloomberg) -- Mutual fund investors are
pulling money from funds that invest heavily in technology
stocks, company officials said.
A net $29 million was pulled from so-called aggressive
growth funds that are marketed by Charles Schwab Corp. this month
through yesterday, said Tracey Gordon, a company spokeswoman.
Schwab sells about 30 of these funds through its mutual fund
supermarket.
T. Rowe Price Associates Inc. reported that its Science &
Technology Fund is seeing ``minuscule'' net outflows.
There are 257 aggressive growth funds monitored by Bloomberg
Fund Performance. Just six of them have positive one-week returns
and only half are reporting positive year-to-date returns,
according to the Bloomberg. These figures don't include today's
results.
Small company stocks are down for a seventh straight day
amid concerns about the bearish outlook for technology company
earnings. The concerns were prompted by negative reports from
bellwether companies such as Oracle Corp., Computer Associates
International Inc. and Cisco Systems Inc.
The Russell 2000 Index, the benchmark used to gauge the
performance of small company stocks, is down about 3 percent for
the year. It fell almost 1 percent today.
Investors are beginning to pay attention to the stock market
weakness, said Tom Wroblewski, trading desk manager at Jack White
& Co. in San Diego.
``Redemptions are slightly more than normal today,''
Wroblewski said. ``It's nothing outlandish though.''
AMG Data Services, a company in Arcata, California, that
tracks mutual fund money flows, reported that about $94.5 million
was pulled from technology funds in the five-week period ended
March 12. AMG estimates that about $10.7 billion is invested in
technology funds.
Money is flowing at high rates into other types of stock
funds such as growth and income funds, according to AMG.
Overall, equity funds sold through Schwab attracted almost
$715 million in net inflows, with the highest percentage of money
going to international-related funds, Gordon said.
Boston-based Scudder, Stevens & Clark Inc. is reporting
positive cash flows. ``Investors are moving more money to
conservatively managed funds,'' said Gavin Quill, marketing vice
president. ``It's a trend that began last summer.''
--Tim Quinson in Boston (617) 542-3766 through New York newsroom (212) 318-2300 /daa
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