Mutual funds rebound after late-summer slide

Inflows into long-term mutual funds last week reversed a trend of net outflows that had dominated since August. Bond and equity mutual funds combined received $13.54 billion for the week ended Oct. 23, according to estimates from the Investment Company Institute. The week before, the funds sustained $1.9 billion in outflows.
NOV 04, 2013
Inflows into equity mutual funds last week led long-term mutual funds to reverse a trend of net outflows that had dominated since August. Bond and equity mutual funds combined received $13.54 billion for the week ended Oct. 23, according to estimates from the Investment Company Institute. The week before, the funds sustained $1.9 billion in outflows. Equity funds comprised almost all of those gains, with flows equaling $13.5 billion, compared to $2.9 billion the previous week. Outflows from bond flows dropped last week, with losses of $2.3 billion compared to $5.4 billion in the previous week. The decrease occurred both in municipal and taxable bonds. The equity market is riding a high, and investors want to take part in the action, said Todd Rosenbluth, director of mutual fund research at S&P Capital IQ. “There's optimism that the market is going to continue to move higher,” he said. “Even though you may have missed some of the gains, there's still more gains to be had.” Last week's results also show that the influence of bond mutual funds, which have been an anchor on total net flows, could be dissipating, Mr. Rosenbluth said. “The fact that we're seeing half the outflows that we saw last week … is encouraging,” he said. In coming months, Mr. Rosenbluth said this week's gains in long-term mutual funds could continue if the Federal Reserve holds steady on current policy. “If we see the macro economy stay where it is, then we expect this trend to continue,” he said. “Faster tapering than expected is going to impact the fixed-income market.”

Latest News

Investors win lawsuit against Atlanta B-D over tax shelter investment, potentially a first
Investors win lawsuit against Atlanta B-D over tax shelter investment, potentially a first

InvestmentNews reported in 2017 that the IRS was scrutinizing the tax shelter land deals, called syndication conservation easements.

Pontera unveils non-discretionary advice tools in continued retirement platform buildout
Pontera unveils non-discretionary advice tools in continued retirement platform buildout

Advisors gain a second workflow for 401(k) guidance as the fintech expands beyond bulk rebalancing, backed by new policy research on advice access.

HSA balances hit record high, but are clients using them wrong?
HSA balances hit record high, but are clients using them wrong?

New data shows most people do not have enough saved to cover costs and are not fully utilizing their accounts.

Advisor moves: LPL, Cetera, Raymond James, NewEdge Wealth
Advisor moves: LPL, Cetera, Raymond James, NewEdge Wealth

Firms announce new recruits this week, with teams overseeing hundreds of millions in client assets switching affiliations.

Stratos Wealth adds $400M with RPI Financial Life Planners
Stratos Wealth adds $400M with RPI Financial Life Planners

It’s the 12th deal for Stratos since SEI's investment and follows 11 acquisitions worth $4.8B in 2025.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income