Stock Funds Post Huge January Inflows

March 01, 2004

Third best month on record, says the ICI.

The combined assets of the nation's mutual funds increased by $122.3 billion, or 1.6 percent, to $7.536 trillion in January, according to the Investment Company Institute's official survey of the mutual fund industry.

Fund Type

Jan 2004

Dec 2003

% chg

Dec 2002

Stock Funds

3,804.7

3,684.8

3.3

2,663.0

Hybrid Funds

447.7

436.7

2.5

330.5

Taxable Bond Funds

915.6

906.8

1.0

796.4

Municipal Bond Funds

335.1

334.1

0.3

328.5

Taxable Money Market Funds

1,733.9

1,763.3

-1.7

1,997.2

Tax-Free Money Market Funds

299.5

288.4

3.8

274.8

Total

7,536.4

7,414.1

1.6

6,390.4

Source: Investment Company Institute

Stock funds posted a $43.76 billion inflow in January, compared with the $14.18 billion inflow posted in December. The January cash flow is the third largest monthly inflow to stock funds. The two largest one-month inflows were $55.61 billion in February 2000 and $44.54 billion in January 2000, according to the ICI.

Activity Jan-04 Dec-03 YTD 2004 YTD 2003
New Sales 104,271 84,607 104,271 72,100
Redemptions -67,900 -72,494 -67,900 -68,291
Exchanges In 22,083 16,779 22,083 23,119
Exchanges Out -14,697 -14,713 -14,697 -27,190
Net New Cash Flow 43,758 14,178 43,758 -262

Source: Investment Company Institute

Total industry assets reached a record level of $7.536 trillion in January. The previous record was $7.467 trillion in August 2000, according to the ICI.

ETFs

The combined assets of the nation's exchange-traded funds (ETFs) were $155.82 billion in January, according to ICI.

Assets of all exchange-traded funds increased by $4.83 billion to $155.82 billion in January. Equity index ETF assets increased by $4.35 billion to $150.67 billion, while bond index ETF assets increased by $482 million to $5.15 billion. Assets of domestic equity ETFs increased by $1.87 billion, and international equity ETF assets increased by $2.48 billion, according to the ICI.

During January, the value of all ETF shares issued exceeded that of shares redeemed by $1.92 billion. Equity index ETFs experienced a positive net issuance of $1.48 billion, while bond ETFs experienced a positive net issuance of $437 million. Gross issuance of all ETFs decreased in January to $11.79 billion from $24.42 billion in December, and redemptions decreased to $9.87 billion from $11.85 billion in December, said the ICI.

Eighty-five ETFs tracked domestic stock indexes in January and held assets of $134.21 billion. Forty-one ETFs tracked international equity indexes and held assets of $16.46 billion. And six ETFs tracked bond indexes, according to the ICI.

 

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