Translate

Friday, October 10, 2008

Stock funds lose $43 billion so far in Oct: TrimTabs

Investors pulled a net $43.3 billion from all equity mutual funds so far in October, extending the record outflows experienced during September, TrimTabs Investment Research said on Thursday.

Funds investing mostly in US stocks had a net outflow of $27.3 billion so far this month, while funds investing mostly in non-US stocks had an outflow of $16 billion. In September, stock funds suffered net outflows of $43.5 billion. In addition, bond funds had a net outflow of $8.8 billion so far in October, following net outflows of $8.1 billion the previous week.

"It is extremely unusual to see this drawdown, not only in stock funds but bond funds," Conrad Gann, TrimTabs' president and chief operating officer, said in an interview. "Investors are putting their money in savings accounts, insured checking deposits and any fund that has a 'Treasury sticker' on it -- anything else isn't being considered," he added.

In September, investors pulled a record $72 billion from U.S.-managed stock and bond mutual funds, as shareholders took $43.5 billion from stock funds last month and $28.8 billion from bond funds, according TrimTabs. TrimTabs, which reports exchange-traded fund activity separately, said that ETFs investing in US stocks had inflows of $4 billion in the latest week ending Wednesday, following inflows of $15 billion in the previous week.

TrimTabs is a research firm headquartered in Sausalito, California.

No comments: