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Mutual-Fund Assets Slide to $419 Million

mutual-fundsAccording to the Investment Company Institute (ICI), in the latest week of trading as investors removed assets from bond funds, long-term mutual funds experienced outflows of approximately $419 million.

Compared to inflows of $1.26 billion week ending September 10, equity funds for week ending September 17 had an estimated inflow of just $157 million. There was also a decline in US equity funds by $1.98 billion although foreign equity-fund inflows of $2.14 billion helped to offset them.

As reported by ICI, there was a decline of $755 million for bond funds compared to the earlier week when inflows were $1.55 billion. In addition, $1.27 billion of taxable funds was removed by investors but in turn they added $517 million to municipal funds as well as $179 million to hybrid funds, which had inflows of $1.06 billion the prior week, both funds that can invest in stocks, as well as fixed-income assets.

iMoneyNet stated there was an increase last week of $22.72 billion in assets for money-market funds, thanks to growth in taxable-fund assets. This increase was close to 50% greater than the net outflow of $13.96 billion from the prior week, thereby representing the third largest weekly increase in assets for 2014. In the week that just ended Tuesday, the total assets specific to money-market funds had skyrocketed to $2.627 trillion.

ICI’s review of the seven-day yield for taxable money-market funds remained at 0.01%. In addition, there was an increase in taxable-fund assets, climbing from $23.82 billion to $2.372 trillion, during a time when approximately $25.6 billion was put in by institutional investors and $1.79 billion was withdrawn by individual investors.

Prime funds that invest in securities to include commercial paper saw an increase of $14.5 billion while $9.32 billion was added to government funds by investors. Tax-free funds experienced a decline to $255.08 billion, down from $1.11 billion. As far as tax-free money market funds, both seven-day and 30-day yields were unchanged at 0.01% in the latest week of trading.

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