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January 04, 2005 at 07:00 PM
Dec. 30, 2004 — Cash flowed into stock funds at almost triple the pace in November compared to the prior month, according to data released today by the Investment Company Institute. Equity portfolios took in about $21.4 billion in net new cash in November, versus inflows of $7.2 billion in October.
John Collins, a spokesman for ICI, said that the dramatic increase in cash flow into equity funds may be explained by several factors, including strong market performance during November, as well as investors’ willingness to put money back into the market following the re-election of President Bush, which lifted pre-election uncertainties.
Year-to-date through November, stock funds have experienced a net inflow of $167.4 billion, ahead of the $138.1 billion recorded for the year-ago period.
The ICI said that among stock funds, world equity funds posted an inflow of $8.5 billion in November, versus an inflow of $4.9 billion in October. Funds that invest primarily in the U.S. had an inflow of $12.9 billion in November, compared with an inflow of $2.3 billion in October.
Bond funds had an inflow of $2.0 billion in November, compared with an inflow of $3.6 billion in October. Taxable bond funds had an inflow of $2.0 billion in November, while municipal bond funds had an outflow of $6 million in November.
