15/09/2011
Strong increase in net outflows from mutual funds in August
Long-term mutual funds nearly doubled their net ourtflows in the United States, to about USD32.5bn, in the month of August, compared with USD17.1bn in July, according to statistics from Morningstar. Mutual funds saw their heaviest outflows since November 2008.Despite market turbulence, US equity funds saw a net outflow of USD15.5bn, compared with USD22.9bn in July. Bond funds saw redemptions of USD12bn. Year to date, US equity funds have seen outflows of USD28.8bn, while bond funds have seen net inflows of USD88.1bn.However, money market funds have posted a net inflow of USD7.48bn, a level not seen since November 2009. However, the previous two months brought a cumulative net outflow of USD150bn.In index-based management, US equity ETFs posted a net inflow of USD394m. International equities ETFs, however, showed outflows of about USD5.5bn, the largest outflows in the past three years. Over the first eight months of the year, US equity ETFs, posted inflows of USD28.05bn, while international equities ETFs show a positive inflow of USD7.84bn.Bond ETFs posted an inflow of USD4.3bn in August, and USD12.88bn in the first eight months of the year, while commodities ETFs have seen an outflow of nearly USD2bn in the month of August, but an inflow of USD560m for the first eight months of the year.
