Friday, April 16, 2010

Mutual Fund Flows for March

Flows into long-term funds rose to $64 billion in March, as a result of an uptick in flows into both stock and bond programs. Bond funds ($40 billion) again drew a majority of the long-term fund flows, as overall still cautious investors sought alternatives to money market funds and deposit accounts in a near-zero cash-yield environment. US equity funds (+5.31%) outperformed international equity funds (+1.99%) over the first quarter helped by a strengthening US dollar, and saw a slight improvement in flows in March, to $12 billion; investor demand for global diversification however persisted, as international equity funds drew an equivalent amount over the month, bringing their total net intake in the first quarter to nearly $30 billion.