October Data Shows Surge In Fund Flows
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The combined assets of the nations mutual funds increased by $202.9 billion, or 2.9%, to $7.151 trillion in October, according to the latest figures available from the Investment Company Institute, Washington.
ICI, the mutual fund industry trade group, surveys mutual fund companies on assets, sales and redemptions.
The figures were released after the recent allegations of fraud against some mutual fund companies began to emerge but before the full impact of that scandal was felt.
"Its too early to look at the effect of the scandal, but it appears that it has had an impact on individual funds that were named [by the Securities and Exchange Commission and state officials] rather than the overall industry," says James Doyle, a spokesman for ICI.
Other observers doubted the allegations would have much effect on fund flows.
ICI reports that long-term funds showed an inflow of $28.12 billion in October, up 46% from $15.13 billion in September. Octobers inflow was the second highest for the year, just below a $29.35 billion inflow in April, ICI says.
For the first 10 months of the year, long-term fundsconsisting of stock, bond and hybrid funds–had a total net inflow of $186.4 billion, up 75% from the same period in 2002.
Stock funds led for the month with a $25.52 billion inflow, the largest of the year for this group of funds and up from $17.26 billion in September.
