U.S. stock funds lose another $14.3 billion in August

By Mon, Sep 24, 2012

Investors continue to pull money out of open-end stock funds, even as equity indices remain robust. Is this what's called an "orderly exit"?

Long-term mutual fund inflows were just $20.7 billion in August 2012, as open-end U.S.-stock funds tallied yet another month of outflows, losing $14.3 billion, according to Morningstar, Inc.’s latest report. Other highlights from the report include:

  • Investors poured $26.4 billion into taxable-bond funds ($30.0 billion if ETF flows are included) and another $5.6 billion into municipal-bond funds in August. Altogether, inflows into these funds surpassed $1.1 trillion since the end of 2008 when the Fed cut rates to zero.
  • U.S.-stock mutual funds and ETFs bled $22.4 billion in August, making it the worst month in two years and the fifth worst during the past five years for the asset class.
  • International-stock funds had $2.8 billion in outflows, the group’s worst showing since December 2011.
  • World-bond and inflation-protected bond funds absorbed just over $600 million in combined August inflows.
  • Old Westbury experienced inflows of $1.4 billion, while the American Funds saw another $5.5 billion in outflows.

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