Investors Flocked to Stock Funds in 2003

February 02, 2004

Stock funds experienced their strongest cash flows since 2000, taking in $152.77 billion in all of 2003.

San Francisco - February 2, 2004. Stock funds wrapped up a very strong 2003 taking in nearly $30 billion combined in November and December, according to the latest data from the Investment Company Institute. Stock funds experienced their strongest cash flows since 2000, taking in $152.77 billion in all of 2003, according to the ICI. This represents a substantial turnaround from 2002, when stock funds had a net outflow of $27.75 billion for the year.

For 2003, bond funds had an inflow of $31.40 billion, which is 78% lower than 2002's inflow of $140.34 billion, said the ICI.

The combined assets of the nation's mutual funds increased by $178.90 billion, or 2.5 percent, to $7.413 trillion in December 2003, according to the ICI's official survey of the mutual fund industry. For the year, industry-wide assets increased by $1 trillion. In the survey, mutual fund companies report actual assets, sales and redemptions to the ICI.

 

 

 

 

 

Net New Cash Flow of Long-term Funds (millions of dollars)
Stock Mutual Funds
 
Dec-03
Nov-03
2003
2002
New Sales
85,397
72,819
848,617
898,694
Redemptions
-72,840
-60,462
-711,254
-879,491
Exchanges In
17,174
12,562
239,353
322,425
Exchanges Out
-14,990
-9,989
-223,945
-369,375
Net New Cash Flow
14,740
14,930
152,770
-27,746
Source: ICI

 

Net Assets of Mutual Funds (billions of dollars)
 
Dec-03
Nov-03
% chg
Dec-02
Stock Funds
3,682.8
3,513.3
4.8
2,666.5
Hybrid Funds
436.6
416.4
4.9
327.4
Taxable Bond Funds
906.8
899.0
0.9
796.5
Municipal Bond Funds
334.1
333.7
0.1
328.5
Taxable Money Market Funds
1,764.3
1,779.5
-0.9
1,997.2
Tax-Free Money Market Funds
288.4
292.2
-1.3
274.8
Total
7,413.0
7,234.1
2.5
6,390.9

Source: ICI

 

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